How much should I put down on a house?

20% is the traditional target because it eliminates PMI, but many buyers put down 3-10%. FHA loans require 3.5%, and some conventional loans allow 3% down. The right amount depends on your savings, budget, and local market.

What is a good down payment on a $300,000 house?

A 20% down payment on a $300,000 home is $60,000 and eliminates PMI. A 10% down payment is $30,000 with moderate PMI. A 5% down is $15,000 but adds $138-$250/month in PMI.

Does a larger down payment lower monthly payments?

Yes. Every additional dollar in down payment reduces your loan amount, which lowers your principal and interest payment and eliminates PMI once you reach 20% equity.

What is the best savings account for a down payment?

High-yield savings accounts (HYSA) currently pay 4-5% APY and are FDIC insured, making them ideal for down payment savings. Money market accounts and short-term CDs are also good options for funds you plan to use within 1-3 years.

Are there down payment assistance programs?

Yes. Most states offer down payment assistance programs for first-time buyers. These range from grants to low-interest second mortgages. Income limits apply. Check with your state housing finance agency or HUD-approved housing counselor.

Down Payment Calculator

Find out how much you need to save for a down payment and build a realistic savings plan with interest projections.

Home Price

Down Payment %

Down Payment Needed

$70,000

20% of $350,000

Loan Amount

$280,000

Est. Closing Costs

$8,750

Total Cash Needed

$78,750

PMI Required

PMI Impact at Different Down Payment Levels

3% down$10,500 down

+$424/mo PMI

5% down$17,500 down

+$305/mo PMI

10% down$35,000 down

+$184/mo PMI

15% down$52,500 down

+$99/mo PMI

20% down$70,000 down

No PMI

How to Use This Down Payment Calculator

This calculator has two modes to help you plan your home purchase:

Down Payment Needed Tab

Enter the Home Price and your target Down Payment % to instantly see the cash required. The calculator also estimates closing costs (roughly 2–3% of the purchase price) so you know your total cash needed at closing. Click any row in the PMI comparison table to see how different down payment levels affect your monthly PMI costs — clicking 20% confirms you'll have no PMI at all.

Savings Plan Tab

Enter your Down Payment Target, Current Savings, Monthly Savings, and the interest rate your savings account earns. The calculator shows exactly how many months it will take to reach your goal, how much interest you'll earn along the way, and milestone checkpoints at 25%, 50%, 75%, and 100% of your target.

Down Payment Formula and Calculation

Down Payment = Home Price × Down Payment %
Loan Amount = Home Price − Down Payment
LTV = Loan Amount ÷ Home Price

Savings Growth (with interest):
FV = PV × (1 + r)^n + PMT × [(1 + r)^n − 1] / r

Where:
FV = Future value (savings goal)
PV = Present value (current savings)
r = Monthly interest rate (annual rate ÷ 12)
n = Number of months
PMT = Monthly savings contribution

PMI is typically calculated as an annual percentage of the original loan amount, divided by 12 for the monthly cost. Rates range from 0.3% to 1.5% annually depending on your credit score, loan type, and LTV ratio.

Example: Saving for a $350,000 Home

Maria's Down Payment Plan — Denver, CO

Maria wants to buy a $350,000 condo in Denver and avoid PMI with a 20% down payment. She currently has $10,000 saved and can save $1,500/month in a 4.5% HYSA.

Home Price	$350,000
Down Payment Target (20%)	$70,000
Current Savings	$10,000
Monthly Savings	$1,500
Savings Rate (HYSA)	4.5%
Time to Goal	~3 years 5 months
Interest Earned	~$2,800
Est. Closing Costs	~$8,750
Total Cash Needed at Closing	~$78,750

If Maria chose to put down only 10% ($35,000), she'd reach her goal about 19 months sooner but would pay roughly $170/month in PMI until she builds 20% equity — totaling over $6,000 in PMI before cancellation.

Frequently Asked Questions

20% is the traditional target because it eliminates PMI and gives you instant equity cushion. However, many buyers successfully purchase with 3–10% down. FHA loans require 3.5% minimum and VA loans require nothing. The right amount depends on your savings, monthly budget, and how long you plan to stay. A smaller down payment gets you into a home sooner but costs more monthly; a larger one costs less monthly but requires more time to save.

A 20% down payment on a $300,000 home is $60,000, which eliminates PMI entirely. A 10% down ($30,000) triggers moderate PMI around $150/month. A 5% down ($15,000) adds roughly $200–$275/month in PMI. Remember to budget an additional 2–3% for closing costs ($6,000–$9,000), so your total cash needed at closing ranges from $21,000 to $69,000 depending on your down payment choice.

Yes, in two ways. First, a larger down payment means a smaller loan, which directly lowers your principal and interest payment. Second, reaching 20% down eliminates PMI, saving another $100–$400/month. For a $350,000 home at 6.75% over 30 years, going from 10% to 20% down saves about $200/month in P&I plus eliminates roughly $175/month in PMI — a total savings of $375/month.

High-yield savings accounts (HYSAs) currently pay 4–5% APY, are FDIC insured up to $250,000, and let you access funds anytime — making them the top choice for down payment savings. Money market accounts offer similar rates with check-writing features. Short-term CDs (6–12 month) can lock in higher rates if you know your timeline. Avoid the stock market for funds you'll need within 3 years due to volatility risk.

Yes — most states and many cities offer down payment assistance (DPA) programs, particularly for first-time buyers or those below certain income limits. Programs range from outright grants (free money) to forgivable second mortgages or deferred loans. The national average DPA grant is around $17,000. Search your state housing finance agency or visit hud.gov to find HUD-approved housing counselors who can connect you with local programs.