Down Payment Calculator

How to Plan Your Down Payment Savings

The down payment is often the biggest hurdle for first-time homebuyers. This calculator helps you set a realistic savings target and timeline by comparing your goal against what you have already saved. Understanding the gap and how long it will take to close it is the first step toward homeownership.

How Much Should You Put Down?

While 20% is the traditional target because it avoids private mortgage insurance, many buyers put down less. Conventional loans may require as little as 3%, and FHA loans accept 3.5% down. However, a smaller down payment means a larger loan, higher monthly payments, and additional PMI costs that can add $100-300 or more per month.

Strategies to Save Faster

Automate your savings by setting up a recurring transfer to a dedicated high-yield savings account each payday. Cut discretionary spending, consider a side income, and direct any windfalls like tax refunds or bonuses straight into your down payment fund. Even small increases in monthly savings can shave months off your timeline.

Remember that the down payment is not your only upfront cost. Budget an additional 2-5% of the home price for closing costs, and keep an emergency fund separate from your down payment savings.