Down Payment Calculator

This calculator does two things: it tells you the dollar amount of your target down payment, and it tells you how long it will take to save that amount given your current savings, monthly contributions, and expected return.

1. Enter the home price and your target down payment percentage.
2. Enter current savings you already have set aside for a down payment.
3. Enter your monthly savings - the amount you can add to the fund each month.
4. Enter expected return - the annual return on your savings account or investment. A high-yield savings account earns about 4-5% in 2024.

The comparison table at the bottom shows what 5%, 10%, 15%, and 20% down payment scenarios look like side by side, including the estimated PMI cost for any option below 20%.

Down payment amount:

Down Payment = Home Price × (Percentage / 100)

On a $400,000 home at 20%: down payment = $80,000.

Time to save (with growth):

The calculator adds your expected return to your savings each month and counts how many months until the balance reaches the goal. It uses the future value of a growing annuity:

FV = PV × (1+r)^n + PMT × [(1+r)^n - 1] / r

Where PV = current savings, PMT = monthly contribution, r = monthly return, n = months.

Example: $30,000 saved, $1,000/month, 4% return. Reaching $80,000 takes about 45 months (3 years 9 months).

PMI estimate: Private mortgage insurance typically costs 0.5% to 1.5% of the loan per year. The comparison table uses 1% as a reasonable estimate. PMI is removed once you reach 20% equity.