Housing
Down Payment Calculator
Figure out the total upfront cash you'll need to buy a home — down payment plus closing costs — and how that compares to what you've already saved. Enter your target home price and we'll show the cash target, the gap, and the monthly savings rate to close it.
Housing
Down Payment Calculator
Result
The biggest cash hurdle in buying a home isn't the down payment alone — it's the down payment plus thousands of dollars in closing costs, all due at the same time. The median first-time homebuyer in 2024 put down 8% to 9% on the home and paid an additional 2% to 5% in closing costs. On a $350,000 home, that's roughly $35,000 to $45,000 needed at closing. This calculator turns a target home price into a real cash target you can save against — and shows you the monthly savings rate needed to get there.
How this calculator works
You enter four values and we compute the upfront cash you'll need:
- Home price. The purchase price of the home you're targeting. If you're not sure, check listings in your target area or use our House Affordability Calculator for a starting point.
- Down payment percentage. What percentage of the home price you'll put down at closing. Common choices: 3% to 3.5% (FHA, conventional minimums), 5% to 10% (typical first-time buyer), 20% (avoids PMI).
- Closing cost percentage. Closing costs typically range from 2% to 5% of the purchase price. A safe default is 3% if you don't have a specific estimate from a lender yet.
- Amount already saved. What you've already set aside for this purchase, in whatever account it's sitting in.
The math is straightforward: down payment ($) + closing costs ($) = total cash needed at closing. The calculator subtracts what you've already saved to show the remaining gap, plus options for closing the gap over different timelines.
What this number actually means
Three numbers carry the most weight:
- Total cash needed at closing. Down payment plus closing costs. This is the amount that has to be in your account on the day you sign — typically as a cashier's check or wire transfer.
- Remaining gap. The difference between what you've saved and what you need. This is the actual savings target.
- Monthly savings rate to close the gap. Test different timelines (12, 24, 36 months) to find a number that fits your budget.
If the gap looks intimidating, the levers are: extend the timeline, target a lower home price, or explore lower down payment options (3-5%) — each comes with trade-offs that are worth modeling against the same home price.
The down payment percentage decision
The 20% down payment is a benchmark, but it's not a requirement, and putting less down isn't necessarily wrong. Each percentage has a real cost-benefit profile:
Lowest upfront cash. Lets you buy sooner. Costs: PMI/MIP added to monthly payment ($100-$400+ per month), higher loan amount means more interest paid over the life of the loan, less equity if home values drop.
The "middle ground" most first-time buyers land in. Still requires PMI on conventional loans, but at a lower rate than 3-5% down. Monthly payment is more manageable than with minimum down.
No PMI, lowest monthly payment, best interest rates, most equity from day one. Requires significantly more cash upfront — often 3-5+ years of dedicated saving for first-time buyers.
The right number depends on your situation: how soon you want to buy, how stable your income is, how much you can save monthly without depleting other savings, and what's reasonable for the homes available in your area. For most first-time buyers, somewhere between 5% and 15% is the realistic range.
What closing costs actually cover
Closing costs are the fees and prepaid items required to actually transfer ownership of a home. They typically run 2% to 5% of the purchase price and include:
- Lender fees: Loan origination (often 0.5% to 1% of loan), underwriting, processing, application — typically $1,000 to $3,000 combined.
- Third-party fees: Appraisal ($400-$700), home inspection ($300-$600), title search and title insurance ($1,000-$3,000), attorney fees in some states ($500-$1,500), survey ($300-$500).
- Prepaid items: Property tax escrow (often 2-6 months upfront), homeowners insurance (full first year), mortgage insurance premium upfront (FHA), prepaid interest from closing to first payment date.
- Recording and transfer taxes: Local taxes for recording the deed and mortgage; transfer taxes that vary widely by state ($0 to thousands).
Lenders must provide a Loan Estimate within 3 business days of your application that itemizes expected closing costs. Comparing Loan Estimates from multiple lenders is the single best way to spot inflated or padded fees.
Strategies that actually move the needle
If the savings gap looks daunting, several approaches help shorten the timeline meaningfully:
- Use a high-yield savings account. A 4-5% APY on the savings you've already accumulated adds up. On $25,000 already saved, that's $1,000-$1,250 per year of free money. Online banks like Marcus, Ally, Discover, and CIT routinely beat traditional banks by 4+ percentage points.
- Set up automatic transfers. Treat the down payment fund like a recurring bill — auto-transfer on payday before you have a chance to spend the money. Use our Savings Goal Calculator to set the exact monthly amount.
- Apply windfalls in full. Tax refunds, bonuses, gift money, side income — applied entirely to the down payment fund, these can shave months or years off the timeline. A $2,500 tax refund saved twice equals a 1.5% down payment on a $330,000 home.
- Look at first-time homebuyer assistance. Many states, counties, and cities offer down payment assistance programs for first-time buyers — grants, forgivable loans, or matched savings programs. Check your state housing finance agency website.
- Consider a smaller home or different area. The down payment math is brutal at the top of your price range. Stepping down 10-15% in home price can dramatically shrink the cash needed and the time to save.
- Negotiate seller concessions. In some markets, sellers will agree to pay a portion of buyer closing costs as part of the deal. This is more common in buyer's markets but worth asking your agent about regardless.
Limits of what this can tell you
The calculator assumes several things that may not match your exact situation:
- Closing costs vary widely. Costs differ by state, lender, and loan type. New Jersey and New York are notoriously high; states without transfer taxes are lower. Get an itemized Loan Estimate from a lender for a real number.
- Down payment requirements vary by loan type. FHA, VA, USDA, conventional, jumbo — each has different minimums and rules. The percentage you can put down isn't always your choice.
- Reserves may be required. Many lenders require you to have 2-6 months of mortgage payments in reserve after closing — not just enough for the closing itself.
- Property taxes vary dramatically. The escrow portion of closing costs depends on local property tax rates, which range from under 0.5% to over 2% of home value annually depending on where you live.
- Doesn't include moving costs or new-home expenses. Plan an additional $2,000-$10,000+ for movers, immediate repairs, basic furniture, and the inevitable home-ownership surprises in year one.
Frequently asked questions
How much should I put down on a house?
The widely cited benchmark is 20% down because it lets you avoid private mortgage insurance (PMI), gives you immediate equity, and typically secures the best interest rates. However, the median first-time homebuyer puts down just 8% to 9%, and FHA loans accept as little as 3.5% down. The right number for you depends on home prices in your area, what you can save without depleting your emergency fund, and how much you can comfortably handle as a monthly payment.
Do I need 20% down to buy a house?
No. Conventional loans can be obtained with as little as 3% down (5% for second homes). FHA loans allow 3.5% down. VA and USDA loans, for eligible borrowers, allow zero down. The trade-off for putting less down is private mortgage insurance (PMI) on conventional loans below 20%, mortgage insurance premium (MIP) on FHA loans, and a higher monthly payment overall. Use our House Affordability Calculator to see how the math changes with different down payments.
What are typical closing costs on a home purchase?
Closing costs typically run 2% to 5% of the home's purchase price. On a $350,000 home, that's $7,000 to $17,500. The mix includes lender fees (origination, underwriting), third-party fees (appraisal, title insurance, inspection, attorney), prepaid items (property taxes, homeowners insurance, mortgage insurance), and recording/transfer taxes. Closing costs can sometimes be negotiated with the seller or rolled into the loan, but they're separate cash from the down payment.
What is PMI and how do I avoid it?
Private mortgage insurance (PMI) protects the lender if you default on a conventional loan with less than 20% down. It typically costs 0.3% to 1.5% of the loan amount annually, paid monthly. On a $350,000 loan, that's $1,050 to $5,250 per year — often $90 to $400+ per month. You can avoid PMI by putting 20% down at closing, or eliminate it later by reaching 20% equity through payments and home appreciation (then requesting cancellation from the lender).
Should I empty my savings to put more down on a house?
No. Buying a home creates new expenses (property taxes, insurance, maintenance, repairs) that often surprise first-time buyers. Keep at least 3 to 6 months of essential expenses as an emergency fund separate from your down payment. A common framework is: put as much down as you reasonably can while preserving a full emergency fund, then prioritize building back any savings depleted within the first 1 to 2 years of ownership.
How long does it take to save a down payment?
It depends entirely on home prices in your area and how much you can save monthly. For a $50,000 down payment goal (roughly 15% on a $330,000 home plus closing costs), saving $1,000 per month in a high-yield savings account earning 4.5% APY takes about 3 years and 8 months. Saving $1,500 per month brings it to about 2 years and 7 months. Most first-time buyers save for 3 to 5 years before purchasing.
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Important note
WalletCalcs provides educational estimates only. Results are not financial, tax, lending, legal, or investment advice. Closing costs, loan requirements, mortgage insurance rates, and down payment assistance programs vary by lender, state, and program. Always confirm important decisions with a licensed lender, a real estate professional, or both.