Down Payment Calculator
Calculate the down payment on a home from the price and percentage, the loan amount that remains, whether you avoid mortgage insurance, and how long to save.
كيفية استخدام هذه الحاسبة
- 1Enter the home price and your target down payment percentage.
- 2See the down payment amount and the loan that remains.
- 3Check whether it reaches 20% to avoid mortgage insurance.
- 4Add your current savings and monthly saving to see how long it takes to reach.
طريقة الحساب
Down payment
down payment = home price × percentage loan amount = home price − down payment 20%+ down typically avoids mortgage insurance (PMI) months to save = (down payment − current savings) ÷ monthly saving
A down payment is the portion of a home's price you pay in cash up front, with the rest borrowed as a mortgage. It is calculated simply as the price times the down payment percentage, and the remainder becomes the loan. The size of the down payment matters for several reasons: a larger one means a smaller loan and lower monthly payments, and crossing the 20% threshold usually lets a buyer avoid private mortgage insurance, an extra monthly charge that protects the lender when the down payment is small. Given how much you have saved and how much you set aside each month, the calculator also shows how long it will take to reach the target. Beyond the down payment itself, buyers must budget for closing costs, which add several more percent of the price and are due at the same time.
مثال محلول
On a $350,000 home, a 20% down payment is $70,000, leaving a $280,000 mortgage and avoiding PMI. If you have $20,000 saved and add $1,000 a month, the remaining $50,000 takes 50 months — a little over four years — to save, which is why some buyers opt for a smaller down payment to buy sooner.
Down Payment Calculator: الدليل الكامل
How much should you put down?
The down payment is one of the biggest financial decisions in buying a home, and the 'right' amount involves real trade-offs rather than a single correct answer. A larger down payment reduces the loan, lowers the monthly mortgage payment, cuts the total interest paid over the life of the loan, and — past 20% — eliminates mortgage insurance. It also gives you instant equity and a cushion against falling house prices. For all these reasons, a bigger down payment is financially advantageous once you can afford it.
But putting more down has costs too. It ties up cash that could be an emergency fund or an investment, and saving a large sum can mean years of waiting while rents rise and house prices may climb faster than you save. This is the central tension: a bigger down payment is cheaper in the long run, but a smaller one lets you buy sooner. There is no universal answer — it depends on house prices, your savings rate, loan options, and how the numbers compare to renting in the meantime.
The 20% threshold and mortgage insurance
The reason 20% down is treated as a milestone is private mortgage insurance, or PMI. When a buyer puts down less than 20%, lenders view the loan as riskier and require insurance that protects the lender (not the borrower) if the loan defaults. The borrower pays for it, typically as a monthly addition to the mortgage payment that can run to hundreds of dollars a month. Reaching 20% down avoids this charge entirely, which is a genuine and ongoing saving.
PMI is not permanent, however, and this changes the calculus. On many loans it can be cancelled once you have built 20% equity through payments and appreciation, so a buyer who puts down less is not stuck paying it forever. This means the choice is not simply '20% or bust'. For some, buying earlier with a smaller down payment and PMI, then cancelling the insurance later, works out better than delaying the purchase for years. The calculator flags whether your down payment clears 20%, but whether paying PMI temporarily is worth it is a personal judgement about timing and the housing market.
Don't forget closing costs and reserves
A common and expensive mistake is to save exactly the down payment and nothing more. Buying a home carries closing costs — lender fees, appraisal, title insurance, taxes, and more — that typically add 2% to 5% of the purchase price, due in cash at the same time as the down payment. On a $350,000 home that is another $7,000 to $17,500 on top of the down payment. Arriving at closing with only the down payment saved leaves you unable to complete the purchase.
Lenders also generally want to see that a buyer has cash reserves left after closing, and prudence demands the same. Draining every dollar into the down payment leaves no emergency fund for the inevitable early costs of homeownership — repairs, maintenance, moving expenses — and no cushion for a job loss or unexpected bill. The wiser approach is to plan for the down payment, plus closing costs, plus a retained emergency fund, as a single total. A slightly smaller down payment that preserves a financial safety net is usually better than a maximal one that leaves you house-rich and cash-poor from day one.
الأسئلة الشائعة
How much is a down payment on a house?
It's the home price times your down payment percentage. On a $350,000 home, 20% is $70,000, leaving a $280,000 mortgage. Down payments commonly range from 3% to 20%+, with 20% being the level that avoids mortgage insurance.
Do I need 20% down to buy a home?
No. Many loans allow 3% to 5% down, and some government-backed loans even less. Putting 20% down avoids private mortgage insurance and lowers your payments, but it's not required — buying sooner with a smaller down payment and PMI can be the better choice for some buyers.
What is PMI and how do I avoid it?
Private mortgage insurance is a monthly fee lenders charge when you put down less than 20%, protecting them if you default. You avoid it by putting at least 20% down, and on many loans it can be cancelled later once you reach 20% equity through payments and appreciation.
What other costs come with a down payment?
Closing costs — lender fees, appraisal, title, and taxes — typically add 2% to 5% of the price, due at the same time. Lenders also want cash reserves left over. Budget for the down payment plus closing costs plus an emergency fund, not just the down payment alone.