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Down Payment Calculator: How Much to Save and for How Long
Enter the home price and the down payment percentage to see the cash needed with closing costs, how many months of saving it will take, and how the loan and monthly payment change at other percentages.
What cash you actually need
The down payment is only part of the cash required on purchase day. Closing costs (legal work, valuation, registration, lender fees and similar) are paid at the same time and are often a few percent of the price, though they vary by country and lender. This calculator adds them to the down payment to give the target: Target = Price × (Down % + Closing %) ÷ 100.
Moving costs, repairs and an emergency reserve come on top and are worth keeping outside the target.
How the savings time is found
With no return on savings, the time is simply the gap divided by the monthly amount. If your savings earn interest, the balance after n months is S × (1 + i)n + M × ((1 + i)n − 1) ÷ i, where S is the starting amount, M the monthly saving and i the monthly rate. Setting that equal to the target and solving for n gives n = ln((T·i + M) ÷ (S·i + M)) ÷ ln(1 + i). Returns can be lower than assumed, and invested money can fall in value, so a cautious plan uses a low or zero rate.
Trade-offs of a larger or smaller down payment
- Larger: a smaller loan, lower monthly payments, less total interest, and often better terms because the lender carries less risk.
- Smaller: you can buy sooner, but the loan, interest and sometimes insurance costs grow. A price fall can also leave you with little or no equity.
The comparison table shows the loan and payment at several percentages for the same price and rate. Use the loan-to-value calculator to see how the percentage maps to lender thresholds, and the mortgage calculator for the full monthly cost with tax and insurance.
Limits
Programmes that help first-time buyers, minimum requirements and insurance rules differ by place and change over time, so none are built in. Enter the percentages your lender quotes. The monthly figure covers principal and interest only. Treat results as a planning aid rather than a quote.
A practical way to use the page is to run it three times: once with your real savings rate, once with a smaller monthly amount to see the effect of a tight month, and once with a higher down payment percentage to see the extra waiting time. The difference in months between those runs shows what each choice costs in time, which is often easier to judge than a difference in dollars. Remember also that house prices may move while you save, so a target that is reached in three years may be a different number by then.
Worked example
A 450,000 home with 15% down and 3% closing costs, 20,000 already saved, 1,500 saved a month in an account earning 3% a year.
Inputs
| Home price | 450000 |
|---|---|
| Down payment | 15 % of price |
| Closing costs | 3 % of price |
| Already saved | 20000 |
| Amount you can save each month | 1500 |
| Yearly return on savings | 3 % |
| Mortgage interest rate | 6 % |
| Mortgage term | 30 years |
Result
About 38 months of saving (3.2 years).
A down payment under 20% often means paying mortgage insurance or a higher rate, depending on the lender and country. This calculator does not include that cost.
| Down payment | 67,500 |
|---|---|
| Closing costs | 13,500 |
| Still to save | 61,000 |
| Loan amount | 382,500 |
| Monthly principal and interest | 2,293.28 |
| Loan-to-value | 85.0% |
The same home at other down payment levels
| Down payment | Cash down | Loan | Monthly principal and interest |
|---|---|---|---|
| 3.5% | 15,750 | 434,250 | 2,603.55 |
| 5% | 22,500 | 427,500 | 2,563.08 |
| 10% | 45,000 | 405,000 | 2,428.18 |
| 15% | 67,500 | 382,500 | 2,293.28 |
| 20% | 90,000 | 360,000 | 2,158.38 |
| 25% | 112,500 | 337,500 | 2,023.48 |
| 30% | 135,000 | 315,000 | 1,888.58 |
Financial disclaimer: Results are estimates for planning and education. They are not financial, tax or legal advice. Fees, taxes, rates and rules vary by lender, product and country, so confirm figures with your provider or a qualified adviser before making decisions.
Frequently asked questions
How much should I put down on a house?
There is no single right figure. Larger down payments reduce the loan, interest and sometimes insurance, while smaller ones let you buy earlier. Choose a level that leaves a reserve for emergencies.
Are closing costs part of the down payment?
No. They are separate costs paid at the same time. This calculator adds them to show the total cash needed.
Is 20% required?
Not necessarily. Rules differ by country and lender. A smaller down payment often adds costs such as mortgage insurance.
How is the saving time calculated?
Without a return it is the remaining amount divided by your monthly saving. With a return, a compound-growth formula is solved for the number of months.
Does the payment shown include tax and insurance?
No. It covers principal and interest only, so add property tax, insurance and any association fees to see the full monthly cost.
Related calculators
References and sources
- Consumer Financial Protection Bureau: educational guides on down payments and closing costs. Link
- Future value of an annuity formula from introductory finance texts.