Down Payment Calculator — How Much to Save & Monthly Plan
Down payment size changes everything — your loan amount, monthly payment, and often whether you need mortgage insurance. Enter your target home price and down payment percentage to see the amount needed, plus exactly how much to save each month to get there by your target date.
How to use this tool
- Enter your target home price and desired down payment percentage — 20% avoids mortgage insurance on conventional loans, but many programs allow much less.
- Add anything already saved toward it.
- Enter how many months until your target purchase date.
- Press Calculate to see exactly how much to save each month to hit your goal.
Frequently asked questions
Do I really need 20% down?
No — it's a common benchmark but far from required. FHA loans allow as little as 3.5% down, conventional loans often allow 3-5% for first-time buyers, and VA/USDA loans can allow 0% down for eligible borrowers. Below 20% on a conventional loan typically means paying PMI (private mortgage insurance) until you build enough equity.
What is PMI and how much does it cost?
Private Mortgage Insurance protects the lender (not you) if you default, required on most conventional loans with under 20% down. It typically costs 0.5-1.5% of the loan amount annually, added to your monthly payment, and can usually be removed once you reach 20% equity.
Is a bigger down payment always better?
Not automatically. A larger down payment lowers your monthly payment and total interest, but tying up more cash means less liquidity for emergencies or other investments. Compare the mortgage rate against what that money could otherwise earn — in some rate environments, a smaller down payment plus investing the difference can make sense.
Where should I keep down payment savings?
Since you'll need it within a defined, fairly short timeframe, keep it somewhere safe and accessible — a high-yield savings account or short-term fixed deposit — not the stock market, where a downturn right before your purchase date could shrink your down payment when you need it most.