Down Payment Calculator
Work out the down payment you need and how long it will take to save it.
About the Down Payment Calculator
Enter the home price, the down payment percentage, what you've saved so far, how much you save each month and the interest your savings earn. The calculator shows the down payment, how much is still to save, the loan you'll need and how long saving will take.
A 20% down payment avoids private mortgage insurance on US conventional loans and gets better rates in most countries. Minimums are lower: 3–5% on many conventional loans, 3.5% for FHA, 5–10% for UK and Canadian mortgages, and often 20% for investment property or in India (banks lend up to 75–90%).
The formula
Months = first month where savings × (1 + r) + deposit ≥ target
Worked example
A 400,000 home with 20% down
- Down payment: 80,000; loan: 320,000
- With 20,000 saved and 1,500 a month at 4%
- Reached in about 3 years 1 month
Things to keep in mind
- Closing costs (often 2–5% of the price) come on top; save for them too.
- Home prices may rise while you save.
Questions people ask
Is 20% necessary?
No, but less usually means mortgage insurance or a higher rate.
Where should I keep the savings?
Somewhere safe and accessible: high-yield savings, CDs or government savings schemes.
Can a gift count?
Often yes; lenders usually need a gift letter showing it doesn't have to be repaid.