Down Payment Calculator
See the effect of your down payment on the loan and payment.
Home Purchase Details
Total Monthly Payment
The 20% down payment rule
Putting 20% down gives you the best rates and avoids PMI entirely. If you put down less, you will typically pay PMI until your equity reaches 20%. A larger down payment also means a smaller loan, so you pay far less interest over the life of the mortgage.
Down Payment FAQ
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Down Payment Calculator — save the right amount
How much down payment do you need, and how long will it take to save? This calculator works both ways: compute the required down payment for a home price, and the monthly savings needed to reach it — with PMI consequences clearly shown.
Down payment thresholds
20% is the sweet spot — it avoids PMI and gives instant equity. For a $50,00,000 home, that's $10,00,000 cash.
FHA loans allow as little as 3.5%, but add mortgage insurance premiums for life of the loan in many cases.
VA (0%) and USDA (0%) loans exist for eligible buyers — no PMI either. Private lenders often offer 5–10% down with PMI.
Saving for the down payment
A $60,000 down payment in 3 years at 5% return needs about $1,550/month in dedicated savings.
Keep down-payment savings in high-yield savings or CDs — never volatile stocks you may need at a market low.
Gift funds from family are allowed by most lenders but must be documented.
How to use this calculator
- Enter the home price or target amount.
- Enter your down payment percentage (20% is benchmark).
- Optionally enter your monthly savings and rate to see how long it takes.
- Read the down payment amount and, if applicable, the savings timeline.
Pro tips
- Aim for 20% or combine 10% + lender PMI that drops off at 20% equity.
- Include stamp duty and registration (6–8% in many Indian states) in your cash needs.
- Never drain your emergency fund for the down payment.