Down Payment Calculator
Total cash needed for a home (deposit, closing costs, reserve), how long it takes to save with and without rising prices, the monthly saving for 2/3/5 years and the mortgage payment at 5%, 10% and 20% down.
| Down payment | — |
|---|---|
| Closing costs | — |
| Reserve | — |
| Still to save | — |
| Time to get there at your monthly saving | — |
| …allowing for rising prices | — |
| Monthly saving needed to be ready in 2 / 3 / 5 years | — |
| Monthly mortgage payment at 5% / 10% / 20% down | — |
In short
Cash needed to buy = down payment + closing costs (2–5% US, ~6–7% UAE) + a reserve. For a 400,000 home at 20% down with 3% costs and a 10,000 reserve that is 102,000; saving 1,500 a month from 25,000 at 4% takes about 46 months, or 52 once prices rise 3% a year. Below 20% down, expect mortgage insurance.
Who this is for: First-time buyers planning how much cash to save and how long it will take.
How much to put down
| Down payment | Pros | Cons |
|---|---|---|
| 3–5% | Buy years sooner; keeps savings | Mortgage insurance, higher rate, little equity cushion |
| 10–15% | Lower PMI, better rates | Still insured until 80% LTV |
| 20%+ | No PMI, best rates, lower payment | Takes years to save; prices may rise meanwhile |
- Total cash needed is more than the deposit: closing or buying costs (US 2–5%, UK stamp duty and fees, UAE about 6–7%) plus a reserve for repairs, moving and the first months.
- The time-to-save line counts interest on your savings; the second version also grows the target with house prices — the honest picture when markets are rising.
- Minimum deposits by market: US 3% (conventional) / 3.5% (FHA) / 0% (VA, USDA); UK typically 5–10%; UAE 20% for expats under AED 5m, 15% for nationals; Pakistan 10–30% depending on the bank.
See also: Savings Goal Calculator, Mortgage Payment Calculator (PITI).
Assumptions
- Cash needed = price × down % + price × closing % + reserve; gap = cash needed − saved.
- Time to save compounds savings monthly; the rising-price version regrows the target each month at the price growth rate.
- Payment comparison: 30-year amortising loan with 0.6% PMI below 20% down.
Worked example
Cash needed: 80,000 + 12,000 + 10,000 = 102,000; still to save 77,000. At 1,500 a month that takes about 46 months — or about 52 months once the target grows 3% a year with prices. To be ready in 3 years you would need about 2,160 a month. At 6.5% the monthly payment is roughly 2,592 at 5% down, 2,455 at 10% and 2,023 at 20%.
Frequently asked questions
How much is a down payment on a 300,000 house?
15,000 at 5%, 30,000 at 10%, 60,000 at 20% — plus 6,000–15,000 of closing costs depending on the market.
Is 20% down necessary?
No — it avoids mortgage insurance and gets the best rates, but buying sooner with 10% in a rising market often works out better. Compare the payment line and the rising-prices timeline.
Can gifts or family help count?
Usually yes with a gift letter; some lenders cap the gifted share for small deposits. Shared-equity and government schemes vary by country.
Where should I keep the deposit savings?
In cash — high-yield savings, fixed deposits or money-market funds — not in shares, because a market dip in the wrong year can delay the purchase.
How much should I save for a down payment on a 500,000 house?
25,000 at 5%, 50,000 at 10%, 100,000 at 20%, plus roughly 10,000–25,000 of closing costs and a reserve.
How long does it take to save a 20% down payment?
At 1,500 a month from zero, about four and a half years for a 100,000 deposit on a 400,000 home — longer if prices keep rising, which the calculator models.
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