How to use this calculator
- Home price and down payment as a percentage of the price.
- Loan type. Each program has its own minimum down payment and its own kind of mortgage insurance. The calculator tells you if you’re below the minimum.
- Interest rate and loan term, to estimate your monthly payment.
- PMI rate (conventional loans only). It depends on your credit score; 0.5% a year is a placeholder until you have a quote.
- Savings plan. Enter what you’ve saved, how much you add each month and the interest your savings earn. Add closing costs as a percentage of the price to save for the full amount due at closing.
The results show your down payment, the monthly principal, interest and mortgage insurance, a chart and table comparing down payments from the minimum up to 25%, and how long it will take to reach your savings goal.
Minimum down payment by loan type
| Loan type | Minimum down | Upfront fee | Monthly insurance |
|---|---|---|---|
| Conventional | 5% | None | PMI under 20% down, ends at 78% loan-to-value |
| Conventional, first-time buyer | 3% | None | PMI, same rules |
| FHA (credit score 580+) | 3.5% | 1.75% upfront MIP | Annual MIP, 11 years or life of loan |
| FHA (credit score 500–579) | 10% | 1.75% upfront MIP | Annual MIP for 11 years |
| VA | 0% | Funding fee 1.25%–3.3% (some veterans exempt) | None |
| USDA | 0% | 1% guarantee fee | 0.35% annual fee for the life of the loan |
Conventional 3% down (97% loan-to-value) is available through Fannie Mae’s standard 97% option when at least one borrower is a first-time buyer, or through HomeReady, which has income limits instead. USDA loans are for eligible rural and suburban areas and have household income limits. The VA funding fee rates shown are for purchase loans; see the VA loan calculator for the full table, and the FHA loan calculator for how MIP works.
The formulas
The down payment is the price times your percentage, and the loan is what’s left (plus any upfront fee you finance):
For the savings plan, the balance after m months with starting savings S, monthly deposits c and monthly return i (annual rate ÷ 12) is:
The calculator finds the first month where that balance reaches your goal.
Worked example
You’re looking at a $400,000 home with a conventional loan at 6.5% for 30 years and plan to put 10% down.
- Down payment: $40,000; loan: $360,000
- Principal and interest: $2,275.44
- PMI at 0.5%: $150.00 a month, ending after 9 years and 1 month when the scheduled balance reaches 78% of the price
- Payment before taxes and insurance: $2,425.44
With 20% down ($80,000), PMI disappears and the payment drops to $2,022.62, about $403 less, but you’d need $40,000 more at closing.
You’ve saved $15,000 and can add $1,000 a month in a savings account earning 4%. Your goal is $52,000: the $40,000 down payment plus 3% ($12,000) for closing costs. You’ll get there in 2 years and 10 months. Without interest it would take 37 months instead of 34.
The down payment trade-off
Same $400,000 home, conventional loan at 6.5% for 30 years, PMI at 0.5%:
| Down | Down payment | Loan | P&I + PMI | Total PMI | Total interest |
|---|---|---|---|---|---|
| 5% | $20,000 | $380,000 | $2,560.19 | $21,375 | $484,668 |
| 10% | $40,000 | $360,000 | $2,425.44 | $16,350 | $459,164 |
| 15% | $60,000 | $340,000 | $2,290.70 | $10,625 | $433,652 |
| 20% | $80,000 | $320,000 | $2,022.62 | $0 | $408,141 |
| 25% | $100,000 | $300,000 | $1,896.20 | $0 | $382,637 |
Each extra $20,000 down saves about $25,500 in interest over 30 years, and the jump from 15% to 20% also ends PMI. But PMI on a conventional loan is temporary: going from 10% to 20% down saves $16,350 of PMI in total, spread over about nine years.
Comparing loan types at their minimum
On the same $400,000 home at 6.5% for 30 years, at each program’s minimum down payment (upfront fees financed):
| Loan type | Down | Loan amount | P&I | Insurance / month | Total |
|---|---|---|---|---|---|
| Conventional, first-time | 3% | $388,000 | $2,452.42 | $161.67 PMI | $2,614.09 |
| FHA | 3.5% | $392,755 | $2,482.48 | $176.02 MIP | $2,658.50 |
| VA (first use) | 0% | $408,600 | $2,582.63 | None | $2,582.63 |
| USDA | 0% | $404,000 | $2,553.55 | $116.08 fee | $2,669.63 |
In practice the rates differ by program and by credit score, so compare real Loan Estimates.
How PMI ends
On a conventional loan, federal law lets you ask your servicer to cancel PMI once your balance reaches 80% of the home’s original value, if you have a good payment history. The servicer must end it automatically when the balance is scheduled to reach 78%. Prepaying principal gets you there sooner; the mortgage payoff calculator shows how much faster. FHA and VA loans follow their own rules.
Tips
- Save for more than the down payment. The CFPB says closing costs typically run 2% to 5% of the purchase price; the closing cost calculator itemizes them. Keep an emergency fund too.
- Look for assistance. Many state and local housing agencies offer down payment grants or second loans for first-time buyers.
- Check affordability first. The home affordability calculator shows what price fits your income, and the mortgage calculator adds taxes and insurance to your payment.
- Put savings to work. A high-yield savings account or CD keeps your money safe while it earns interest; see the savings calculator.
Assumptions and limitations
- Payments are for a fixed-rate loan and exclude property tax, home insurance and HOA dues.
- Conventional PMI is a flat annual percentage of the original loan, charged until the scheduled balance reaches 78% of the price. Real PMI pricing varies with credit score and coverage.
- FHA uses the ML 2023-05 MIP table; VA assumes first use; USDA uses the fiscal year 2027 fees (1% upfront, 0.35% annual), with annual fees figured on the average scheduled balance each year.
- Savings earn a constant return compounded monthly, with deposits at the end of each month.
Sources
- CFPB: Determine your down payment
- Fannie Mae: 97% loan-to-value options
- HUD FHA Resource Center: Does FHA require a minimum credit score?
- HUD Mortgagee Letter 2023-05: FHA annual MIP rates
- VA funding fee and other closing costs (VA.gov)
- USDA Rural Development: Fiscal Year 2027 Conditional Commitment Notice
- CFPB: When can I remove private mortgage insurance (PMI) from my loan?
This calculator gives estimates for planning. Program rules, rates and fees change; confirm them with your lender.
Frequently asked questions
What is the minimum down payment on a house?
It depends on the loan. VA and USDA loans allow 0% down for eligible borrowers. FHA requires 3.5% with a credit score of 580 or higher. Conventional loans start at 3% for first-time buyers (or through programs like Fannie Mae HomeReady) and 5% for everyone else.
Do I need 20% down to buy a house?
No. Twenty percent is the point where conventional loans stop requiring private mortgage insurance, not a minimum. Putting less down means a bigger loan and, on a conventional loan, PMI until you reach 20% to 22% equity. On a $400,000 home at 6.5%, 10% down costs about $403 a month more than 20% down for principal, interest and PMI.
How much is PMI?
PMI depends mainly on your credit score and down payment, and lenders quote it as an annual percentage of the loan. This calculator uses 0.5% a year as a starting point; ask lenders for a quote. On a $360,000 loan, 0.5% is $150 a month.
When does PMI go away?
You can ask your servicer to cancel PMI when your balance reaches 80% of the home's original value, if you're current on payments. It must end automatically when the balance is scheduled to reach 78%. With 10% down on a 30-year loan at 6.5%, that's after about 9 years of regular payments, or sooner if you prepay.
Is it better to put more down or keep cash in savings?
A larger down payment lowers your payment and interest, but cash in the house is hard to get back. Most buyers are better off keeping an emergency fund and enough for closing costs and moving, then putting the rest down. If PMI is the main cost of a smaller down payment, remember it's temporary on a conventional loan.
How long will it take to save for a down payment?
It depends on your goal, what you've saved and how much you add each month. Saving $1,000 a month on top of $15,000 at 4% reaches $52,000 (10% down plus 3% closing costs on a $400,000 home) in 2 years and 10 months. Doubling your monthly savings to $2,000 cuts that to 1 year and 6 months.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.