Down Payment Calculator
A 20% down payment avoids private mortgage insurance. Enter your target and savings pace to see when you'll be ready.
2 yr 4 mo until you're ready
- Target down payment
- $70,000
- Still to save
- $45,000
- PMI
- avoided (20%+ down)
How it works
The target is a percentage of the home price. Your current savings grow at the entered APY while monthly deposits are added until the balance reaches the target.
Explain it to a kid
Big purchases like a house usually need some cash saved up front before you can borrow the rest — that upfront chunk is called a down payment. It's like saving up for the first big piece of a puzzle before someone helps you buy the rest of the pieces.
Frequently asked questions
How much should I put down?
20% avoids private mortgage insurance and gets the lowest rate on most loans, but many buyers put down less — as low as 3–5% on some conventional and FHA loans — to buy sooner. The calculator shows both your target amount and the 20% threshold so you can compare.
How is the time to save calculated?
Your current savings grow at the APY you enter while your monthly deposit is added each month, compounding until the running balance reaches the target down payment — the same projection the savings-goal and compound-interest calculators use.
Does a bigger down payment always mean a better deal?
It lowers your loan amount and monthly payment and, at 20%+, removes PMI — but tying up more cash reduces your reserves for closing costs, moving expenses, and emergencies. Many lenders and advisors suggest keeping 3–6 months of expenses in reserve even after the down payment.
What if I can't reach 20% down?
You can still buy with PMI, which typically costs 0.3–1.5% of the loan annually and drops off once you reach 20–22% equity — see the PMI calculator for the specific monthly cost and cancellation timeline.