Down Payment Calculator
Calculate your required down payment, savings gap, and how long it will take to reach your goal.
Before you calculate
The target covers the down payment; closing costs and emergency reserves need separate funding. Savings returns are assumed constant.
Down Payment Planning
Your savings grow through monthly contributions plus compound interest. The goal is to accumulate the target percentage of the purchase price. Reaching 20% eliminates the requirement for Private Mortgage Insurance (PMI), which typically costs 0.5–1.5% of the loan amount annually.
Balance(m) = Balance(m−1) × (1 + r) + Monthly Contribution | r = nominal annual rate / 12Example Scenarios
First-Time Buyer, FHA Route
Putting just 3.5% down on a $300,000 home requires $10,500 — achievable in under a year for many savers. FHA loans accept lower credit scores but require mortgage insurance for the life of the loan.
Saving for 20% to Avoid PMI
Saving $80,000 for a 20% down payment on a $400,000 home could take 5+ years at $1,000/month. Meanwhile, buying sooner with PMI may be worthwhile if home values are rising faster than your savings rate.
Methodology & Assumptions
Growth uses monthly compounding. The 12-month required monthly contribution is computed analytically assuming a fixed rate; the time-to-goal iterates month by month.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.