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Down Payment Calculator
About the Down Payment Calculator
Find out how long it will take to save the down payment for a home based on the price, your target percentage and your monthly savings.
How to use the Down Payment Calculator
- Enter the Target Home Price and the Desired Down Payment (%).
- Enter your Current Savings and Monthly Savings Contribution.
- Press Calculate Timeline.
Formula and method
Down payment needed = Price × Percentage ÷ 100, and Months = (Needed − Current savings) ÷ Monthly contribution (before any interest).
Worked example
A $300,000 home with 20% down needs $60,000. With $10,000 saved and $1,000 added each month it takes about 50 months.
Deposit sizes on a $300,000 home. 20% is $60,000, 10% is $30,000 and 3.5% (the minimum on some government-backed loans) is $10,500. A smaller deposit means a larger loan and usually mortgage insurance.
When to use the Down Payment Calculator
- Working out how much cash you need to save for a home.
- Comparing the effect of a 5%, 10% and 20% deposit.
- Setting a monthly savings goal for your deposit.
Common mistakes to avoid
- Saving only the deposit and forgetting closing costs.
- Emptying all savings to make the largest possible down payment.
Tips
- Putting less than 20% down usually means paying mortgage insurance.
- Also save for closing costs and moving expenses.
Frequently Asked Questions
No. Many loans accept 3 to 5 percent, but you will pay insurance and more interest.
No. Many loans accept much less, but with less than 20% you will often pay mortgage insurance and have a higher monthly cost.
Often yes, but lenders usually need a gift letter. Check the rules of your lender.