Down Payment Calculator

Q: How much should I put down on a house?

There's no one-size-fits-all answer. 20% avoids PMI, but most first-time buyers put down 6-7%. The right amount depends on your savings, monthly budget, loan type, and opportunity cost. If you have a stable emergency fund and strong investment returns, a smaller down payment with PMI can be the smarter financial move.

Q: What is PMI and when does it go away?

Private Mortgage Insurance (PMI) is required on conventional loans with less than 20% down. It protects the lender, not you. Cost: 0.5-1.5% of the loan amount annually. Under the Homeowners Protection Act, your lender must automatically cancel PMI when your loan balance reaches 78% of the original home value. FHA MIP lasts the life of the loan if you put less than 10% down.

Q: What's the minimum down payment for each loan type?

Conventional: 3% minimum. FHA: 3.5% with 580+ credit score (10% with 500-579). VA: 0% for eligible veterans and active military. USDA: 0% for eligible rural areas with income below limits. Each has trade-offs — VA and USDA have no PMI but charge funding or guarantee fees.

Q: Should I wait to save 20% or buy now with PMI?

It depends on home price appreciation, your investment returns, and savings rate. If home prices rise 3-5% annually, waiting years could cost more than PMI. PMI on a conventional loan auto-cancels at 78% LTV. Run your exact numbers in the PMI vs Larger Down Payment tab.

Q: What closing costs should I expect?

Closing costs typically run 2-5% of the home price. They include lender origination fees, appraisal, title insurance, attorney fees, prepaid taxes and insurance, and recording fees. On a $400,000 home, expect $8,000-$20,000. Some costs are negotiable, and sellers sometimes contribute.

Calculate how much you need for a down payment, build a savings plan with milestones, and compare PMI vs putting 20% down. Updated for 2026 loan limits and rates.

Calculate your total cash needed to buy a home

Home price

Median US home price: ~$398,400 (2026)

Down payment

Loan type

FHA: 3.5% min, VA/USDA: 0% min

Closing costs

Typically 2-5% of home price

Moving budget

—

Try a scenario

How to Use This Calculator

How Much Do I Need? tab

The default tab. Enter your home price, down payment percentage, and loan type (Conventional, FHA, VA, or USDA). The calculator shows your total cash needed including closing costs and moving budget, plus PMI impact and minimum down payment requirements by loan type.

Savings Plan tab

Set your target home price and down payment goal, then enter your current savings and monthly contribution. See exactly when you'll reach 5%, 10%, 15%, and 20% milestones — with compound interest from a high-yield savings account factored in.

PMI vs Larger Down Payment tab

The most important tab for buyers who have some savings but not 20%. Compare paying PMI with a smaller down payment versus waiting to save 20%. Factors in opportunity cost — what your extra cash could earn if invested instead of locked in home equity.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a partner, lender, or real estate agent.

The Formula

Down payment calculations are straightforward, but the PMI analysis is where the real value lies:

Down Payment = Home Price × Down Payment %
Total Cash Needed = Down Payment + Closing Costs + Moving Budget

Closing Costs = Home Price × Closing Cost % (typically 2-5%)
Loan Amount = Home Price − Down Payment

Monthly PMI = (Loan Amount × PMI Rate) ÷ 12
PMI Duration = Months until balance reaches 78% of original value

Opportunity Cost = Extra Cash × ((1 + Monthly Return)^Months − 1)

The PMI vs 20% down comparison is nuanced. PMI costs money monthly, but tying up extra cash in a down payment has an opportunity cost — that money could be earning returns in the market. At a 7% average return, $40,000 invested for 30 years grows to over $300,000.

Example

James & Priya — First-time buyers, Austin TX

Combined income $140K, targeting a $420K home. They have $45,000 saved. Debating whether to put 10% down now or wait to save 20%.

How Much Do I Need? tab

Down payment (10%)$42,000

Closing costs (3%)$12,600

Moving budget$3,000

Total cash needed$57,600

PMI monthly$158/mo

They need $57,600 total — $12,600 more than their $45,000 savings. They could wait 8 months at $1,500/mo, or reduce down payment to 5%.

PMI vs Larger Down Payment tab

Option A: 10% down + PMI$158/mo PMI for ~9 yrs

PMI total cost$17,064

Option B: 20% down$42,000 more tied up

Opportunity cost at 7%$279,800

Despite PMI costing $17,064, the opportunity cost of tying up an extra $42,000 in the home is far greater. Buying now with 10% down and investing the difference wins.

2026 Loan Type Comparison

Feature	Conventional	FHA	VA	USDA
Min down payment	3%	3.5%	0%	0%
Credit score	620+	580+ (3.5%), 500+ (10%)	No minimum (lender varies)	640+
Insurance/fees	PMI 0.5-1.5%, drops at 78% LTV	1.75% upfront + 0.55% annual MIP	Funding fee 1.25-3.3%	1% upfront + 0.35% annual
PMI cancellation	Auto at 78% LTV	Life of loan (<10% down)	No PMI	Life of loan
Loan limit (2026)	$832,750	$532,750–$1,249,125	No limit	No limit (income caps)
Best for	Good credit, 5%+ down	Lower credit, first-time buyers	Veterans & active military	Rural areas, low-to-mod income

FAQ

How much should I put down on a house? ▼

There's no one-size-fits-all answer. 20% avoids PMI, but most first-time buyers put down 6-7%. The right amount depends on your savings, monthly budget, loan type, and opportunity cost. Use the PMI vs Larger Down Payment tab to compare scenarios at your exact numbers. If you have a stable emergency fund and strong investment returns, a smaller down payment with PMI can be the smarter financial move.

What is PMI and when does it go away? ▼

Private Mortgage Insurance (PMI) is required on conventional loans with less than 20% down. It protects the lender, not you. Cost: 0.5-1.5% of the loan amount annually. Under the Homeowners Protection Act, your lender must automatically cancel PMI when your loan balance reaches 78% of the original home value. You can also request cancellation at 80% LTV. FHA loans have MIP (Mortgage Insurance Premium) which lasts the life of the loan if you put less than 10% down.

What’s the minimum down payment for each loan type? ▼

Conventional: 3% minimum. FHA: 3.5% with 580+ credit score (10% with 500-579). VA: 0% for eligible veterans and active military. USDA: 0% for eligible rural areas with income below limits. Each has trade-offs — VA and USDA have no PMI but charge funding fees or guarantee fees instead.

Should I wait to save 20% or buy now with PMI? ▼

It depends on home price appreciation in your area, your investment returns, and how fast you can save. If home prices rise 3-5% annually, waiting 2-3 years to save more could mean a $20,000-$60,000 higher purchase price. Meanwhile, the cash you'd use for a bigger down payment could earn 7%+ in the market. PMI on a conventional loan auto-cancels at 78% LTV. Use the PMI vs Larger Down Payment tab to run your exact numbers.

What closing costs should I expect? ▼

Closing costs typically run 2-5% of the home price. They include lender origination fees, appraisal ($300-$600), title insurance, attorney fees, prepaid taxes and insurance, and recording fees. On a $400,000 home, expect $8,000-$20,000 in closing costs. Some costs are negotiable, and sellers sometimes contribute. Always budget for closing costs separately from your down payment.

Related Calculators

Add This Calculator to Your Website

Embed the sum.money Down Payment Calculator on your site. Free, responsive, always up-to-date.