Down Payment Calculator Formula & How It Works
Down Payment = Home Price × Down Payment % | Months to Save = Down Payment ÷ Monthly Savings
- Conventional: minimum 3–20% (PMI required if < 20%)
- FHA: minimum 3.5% (with 580+ credit score)
- VA/USDA: 0% down payment available
- PMI savings if ≥ 20% down: ~0.5–1.5% of loan/year
A larger down payment reduces your loan size, eliminates PMI (if 20%+), lowers your interest rate, and reduces monthly payments. However, it depletes savings. The optimal down payment balances these trade-offs — many buyers choose 10–20%.