Down Payment
Calculator
Results
- Down-payment target
- $60,000.00
- Monthly contribution
- $1,000.00
Down-payment savings by month
Down-payment plan checkpoints
- 0 Current savings12000.00
- 48 Down-payment target60000.00
Down-payment saving schedule
| 12 | 24,000.00 | 12,000.00 |
| 24 | 36,000.00 | 24,000.00 |
| 36 | 48,000.00 | 36,000.00 |
| 48 | 60,000.00 | 48,000.00 |
Formula
C = (T − P) ÷ n- T
- 60000.00
- P
- 12000.00
- r
- 0
- n
- 48
= 1000.00
Note
Confirm minimum down-payment and mortgage-insurance rules for the property and lender.
More in Real estate
See all →Frequently asked questions
How is the down payment percentage related to my monthly payment?+
A larger down payment reduces the loan amount you finance, which lowers both your monthly principal-and-interest payment and the total interest paid over the loan term. It can also eliminate the need for mortgage insurance once you cross the 20% threshold on a conventional loan.
Why does 20% down come up so often in these calculators?+
20% is the traditional threshold at which conventional lenders no longer require private mortgage insurance (PMI), since the loan-to-value ratio drops to 80%. It's a convention, not a legal requirement — many loans allow much less down.
Does a bigger down payment always make financial sense?+
Not automatically. Putting more cash into the home reduces liquidity and the opportunity to invest that money elsewhere, and the trade-off depends on your mortgage rate versus expected investment returns. It's a cash-flow and risk decision, not just a math exercise.
What happens if I enter a down payment below what my loan type allows?+
The calculator will still compute the numbers, but in practice minimums are set by loan type — commonly 3% to 5% for conventional loans, 3.5% for FHA, and 0% for eligible VA or USDA loans. Check your specific program's minimum before relying on a hypothetical low figure.
Why is my down payment amount different from my closing costs?+
The down payment is equity you're putting into the purchase price itself, while closing costs are separate fees for originating and completing the transaction. Both are due at closing but they are calculated and budgeted independently.