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Down Payment Calculator 2026 — How Much Do You Need to Buy a House?

Buying a home is one of the largest financial commitments most Americans will ever make, and determining how much money you need to put down is the crucial first step. While the traditional rule of thumb recommends putting down 20% to avoid paying Private Mortgage Insurance (PMI), modern lending guidelines allow creditworthy buyers to purchase a home with as little as 3% down on conventional loans or 3.5% down with an FHA mortgage.
However, your down payment is only part of the equation. Homebuyers also need upfront cash for closing costs — which typically range between 2% and 5% of the total loan amount for appraisal fees, title insurance, loan origination, and property tax escrows. Failing to budget for both your down payment and closing costs is one of the most common reasons first-time buyers face unexpected financial strain at the closing table.
Use our interactive Down Payment Calculator to explore standard US down payment tiers (from 3% to 20%), evaluate your monthly PMI exposure, and simulate your exact savings timeline with a High-Yield Savings Account (HYSA) to see when you'll be ready to buy.

Home Purchase & Down Payment Details

Customize your target price, down payment percentage, and closing costs.

$
Equals: $80,000
%
Equals: $12,000 (typically 2% to 5%)
%

Purchase Financing Breakdown

How your purchase price is allocated between equity, closing costs, and mortgage debt.

Down Payment: $80,000 (20.0%)
Mortgage Loan: $320,000 (80.0%)
Closing Costs: $12,000 (3%)
Total Needed Upfront
Cash Required to Close
$92,000
Includes $80,000 down payment + $12,000 closing fees
Down Payment Amount
$80,000
20% of $400,000
Financed Loan Amount
$320,000
80.0% financed via mortgage
Private Mortgage Insurance (PMI)
$0 / month
🎉 20%+ Down: No monthly PMI required!

Down Payment Savings Planner & HYSA Projection

Simulate how long it takes to save your upfront cash with high-yield savings interest.

$
$
%
Estimated Ready DateApril 203266 months (5.5 years)
Remaining Gap$77,00016% already saved
Interest Earned in HYSA+$12,146Free compound interest boost

Down Payment Benchmark Comparison

Compare how common US down payment tiers (3% to 20%) impact your loan amount, upfront cash to close, and ongoing monthly PMI charges.

Down Payment TierDown Payment ($)Loan BalanceEst. Monthly PMICash to Close (w/ 3% fees)
3% Down
Conventional 97 (First-Time Buyer)
$12,000$388,000~$243/mo$24,000
3.5% Down
FHA Government Loan
$14,000$386,000~$241/mo$26,000
5% Down
Conventional
$20,000$380,000~$238/mo$32,000
10% Down
Conventional
$40,000$360,000~$225/mo$52,000
20% DownActive
Conventional (No PMI)
$80,000$320,000$0 (No PMI)$92,000
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When to Use This Calculator

Everyday financial situations where this tool gives you fast, accurate clarity:

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Compare Down Payment Tiers

See how putting 3%, 5%, 10%, or 20% down alters your monthly mortgage payment and upfront cash needed.

🛡️

Calculate & Eliminate PMI

Discover exactly how much Private Mortgage Insurance (PMI) costs each month and how reaching 20% equity removes it.

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Total Cash to Close Planning

Factor in closing costs (2% to 5%) alongside your down payment so you are never surprised at settlement.

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HYSA Savings Timeline Simulator

Determine the exact month and year you will hit your savings goal using high-yield savings compound interest.

lightbulbFormula & Worked Example

How It Works

Our down payment engine computes your upfront capital requirements and ongoing mortgage insurance based on standard US underwriting guidelines:
  • Down Payment Dollar Amount:

    • Down Payment = Home Purchase Price × (Down Payment Percentage / 100)
  • Financed Mortgage Principal:

    • Loan Balance = Home Purchase Price − Down Payment
  • Estimated Closing Costs (typically 2% to 5% in the US, standard benchmark 3%):

    • Closing Costs = Home Purchase Price × (Closing Cost Percentage / 100)
  • Total Upfront Cash to Close:

    • Total Cash Needed = Down Payment + Closing Costs
  • Private Mortgage Insurance (PMI):

    • If your down payment is less than 20% on a conventional mortgage, lenders require annual PMI, typically costing 0.5% to 1.5% of the loan amount per year:
    Monthly PMI = (Loan Balance × Annual PMI Rate) / 12
  • HYSA Compound Savings Horizon:

    • To reach your cash goal from an existing savings balance, interest is compounded monthly based on your Annual Percentage Yield (APY):
    Future Balance = (Previous Balance × (1 + APY / 12)) + Monthly Contribution

    Step-by-Step Example

    Consider purchasing a median-priced US home for $400,000 with an estimated 3% ($12,000) in lender closing costs:
    - Scenario A (3% Down — First-Time Homebuyer):
    Down payment is $12,000. Loan amount is $388,000. Total upfront cash needed to close is $24,000. Because equity is under 20%, monthly PMI is approximately $242/mo (~$2,900/year).
    - Scenario B (10% Down — Moderate Down Payment):
    Down payment is $40,000. Loan amount is $360,000. Total upfront cash needed to close is $52,000. Monthly PMI drops to roughly $150/mo.
    - Scenario C (20% Down — PMI-Free Benchmark):
    Down payment is $80,000. Loan amount is $320,000. Total upfront cash to close is $92,000. You pay $0 in PMI, saving over $2,400 to $3,000 every single year in insurance premiums.
    - Savings Projection: If you currently have $15,000 saved and deposit $1,000/month into a 4.25% APY High-Yield Savings Account, you will accumulate the $24,000 needed for a 3% down payment in roughly 9 months.

    Frequently Asked Questions

    The minimum down payment depends on your loan program: Conventional loans (such as Fannie Mae HomeReady or Freddie Mac Home Possible) allow as little as 3% down for first-time buyers. FHA loans require a minimum of 3.5% down with a 580+ credit score. VA loans (for eligible military service members and veterans) and USDA loans (for eligible rural properties) offer 0% down payment financing.
    No. The 20% down payment benchmark is a myth for most modern homebuyers; according to the National Association of Realtors (NAR), the median down payment for first-time buyers is between 6% and 8%. However, putting down 20% eliminates Private Mortgage Insurance (PMI), lowers your monthly mortgage payment, and secures the most competitive interest rates from lenders.
    Private Mortgage Insurance (PMI) is an insurance policy that protects the mortgage lender if you default on your loan. Conventional lenders require PMI when your down payment is less than 20% (Loan-to-Value greater than 80%). It typically costs 0.5% to 1.5% of the loan balance per year. Under the federal Homeowners Protection Act, you can request PMI cancellation once your loan balance reaches 80% of original property value, and it automatically terminates at 78%.
    Your down payment is the portion of the home purchase price you pay out of pocket upfront toward the equity of the home. Cash to close is the total amount of money you must bring to the closing table on settlement day, which equals your down payment plus closing costs (such as loan origination fees, appraisal, title insurance, transfer taxes, and prepaid property taxes and homeowners insurance).
    Closing costs typically range from 2% to 5% of the total loan amount. On a $400,000 home purchase with a $360,000 loan, closing costs usually average between $7,200 and $18,000. These fees are detailed on your official Loan Estimate and Closing Disclosure documents provided by your mortgage lender.
    Yes. Most conventional and FHA loan guidelines permit down payment gift funds from family members or approved donors, provided you provide a formal gift letter and bank paper trail confirming the funds do not need to be repaid. Additionally, many state and local housing finance agencies (HFAs) offer Down Payment Assistance (DPA) grants and forgivable second mortgages for eligible first-time and moderate-income homebuyers.

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