Quick answer
A down payment calculator converts a home price into the cash you need at each percentage level, and how long saving takes. On a $425,000 home: 20% down is $85,000, 10% is $42,500, and the FHA minimum of 3.5% is $14,875. With $15,000 already saved and $600 a month at 3%, the 20% target takes about 98 months.
How the Down Payment Calculator works, step by step
Enter the target home price and the down payment percentage, or enter a savings amount and monthly contribution to see the timeline. The calculator shows the cash required, the resulting loan amount, and — because the loan shrinks as the deposit grows — the monthly payment at each level. A comparison panel lists the four common levels side by side: 3.5%, 5%, 10% and 20%.
The percentage matters in three places at once. It sets the loan size and therefore the payment. It decides whether you pay mortgage insurance: below 20% on a conventional loan, PMI applies until you reach roughly 20% equity, typically costing 0.3% to 1.5% of the loan a year. And it affects the rate you are offered, because lenders price loans in tiers by loan-to-value.
The minimums are lower than most buyers assume. Conventional loans start at 3% down for eligible buyers, FHA at 3.5% with a 580 credit score (10% down with a score of 500 to 579), and VA and USDA loans at 0% for eligible borrowers. For 2026 the FHA loan limit runs from $541,287 in most counties to $1,249,125 in high-cost areas, and the conforming loan limit is $832,750.
Do not empty yourself to reach 20%. Closing costs add 2% to 5% of the price on top of the deposit, and moving into a home with no cash reserve left is how a routine repair becomes credit card debt. For many buyers, 10% down with a plan to remove PMI beats 20% down with empty accounts — the 10% target on this home is reachable in 42 months, against 98 for 20%.
Weigh the cost of waiting. If prices rise 3% a year, a $425,000 home costs about $12,750 more per year of waiting, while rent keeps being paid. The 98-month timeline to 20% down means the target itself is moving: the home you are saving for may cost more by the time you get there. The calculator's date output makes the trade-off concrete — a calendar month, not a vague 'someday'.
The formula
Down payment = Home price × down payment %. Loan amount = price − down payment. Months to save are simulated: savings grow monthly at return ÷ 12 plus the monthly contribution until the goal is reached.
Worked example — try it on the calculator above
Worked example: $425,000 home, $15,000 saved, $600 a month at 3%
20% down: $85,000 deposit, loan $340,000, payment at 6.75% about $2,205 a month, no PMI. 10% down: $42,500, loan $382,500, payment about $2,481 plus PMI until equity builds. 3.5% down (FHA): $14,875, loan $410,125, payment about $2,660 plus FHA mortgage insurance — 1.75% upfront and 0.55% a year on most 30-year loans. Saving for the 20% target at $600 a month earning 3% takes about 98 months — 8 years and 2 months — with $58,800 contributed and $11,200 of growth. The 10% target takes 42 months.
Frequently Asked Questions
What is the minimum down payment in the US?
3% for many conventional loans (for eligible first-time and lower-income buyers), 3.5% for FHA loans with a 580 credit score, and 0% for VA loans and USDA loans in eligible rural areas. Low-deposit loans carry mortgage insurance and higher payments, but they let buyers purchase years earlier — often the better trade in a rising market.
How does PMI removal work?
On a conventional loan, you can request PMI cancellation when the balance reaches 80% of the home's original value, and it must terminate automatically at 78% on the original amortisation schedule. If the home has appreciated, a new appraisal (at your cost) can establish 20% equity sooner. FHA mortgage insurance on low-deposit loans generally lasts the life of the loan, removable only by refinancing into a conventional loan.
Can my down payment be a gift?
Usually yes, from a family member, with a signed gift letter stating the money is not a loan, and a paper trail of the transfer. Lenders scrutinise large deposits: expect to document the source of any deposit larger than about half the monthly income. Seasoned funds — in your account for at least two statement cycles — attract fewer questions.
Should I keep saving for 20% or buy sooner with less?
Compare the cost of waiting: PMI and a higher rate for a period, versus house price growth and rent paid while you save. If prices rise 3% a year, a $425,000 home costs about $12,750 more per year of waiting. Buying at 10% down and cancelling PMI within a few years is often the cheaper path — run both timelines rather than following the 20% rule by default.
Estimates, not advice. This calculator provides educational estimates based on the inputs you enter and the assumptions shown on this page. It is not financial, tax or investment advice, and it cannot see your full situation. Verify important figures against official sources, and consider a qualified professional for decisions about your own money. See our Disclaimer and Methodology.