Down Payment Calculator · Practical guide
How Much Should I Put Down on a House?
Twenty percent is the classic target, but the right number depends on your savings, timeline, and the rate environment.
At a glance
The Short Answer
20% is the traditional target because it eliminates private mortgage insurance and minimizes interest — but it is a guideline, not a rule. Most buyers put down 3-10%, and paying PMI for a few years often beats waiting a decade to save 20% while prices climb.
Interactive tool
Down Payment Calculator
Enter your own values, then compare the result with the examples below.
Know Your Minimums
| Loan Type | Minimum Down | On a $350K Home |
|---|---|---|
| Conventional | 3% | $10,500 |
| FHA | 3.5% | $12,250 |
| VA / USDA | 0% | $0 |
| PMI-free conventional | 20% | $70,000 |
The Three Questions That Set Your Number
- How much cash remains after closing? Keep closing costs (2-5% of the price) plus 3-6 months of expenses outside the down payment.
- What does each extra percent save? On a $350K home at 6.5% for 30 years, 10% down gives a $2,122 monthly cost with PMI; 20% down drops it to $1,770 with none. Enter your numbers above to see your exact trade-off.
- What else could the cash do? Money in the house earns a return equal to your mortgage rate. If you carry 22% credit card debt or have no emergency fund, smaller down payments usually win.
A Balanced Approach Many Buyers Use
Put down enough to keep the payment comfortable — often 10% — accept PMI temporarily, and revisit once equity builds. PMI can be removed once your balance reaches 80% of the original value, and appreciation plus payments can get you there years ahead of schedule. The calculator above shows your PMI line item so you can see exactly what the flexibility costs.
Frequently Asked Questions
Is it better to put 20% down or invest the difference?
A 20% down payment earns a guaranteed, tax-free return equal to your mortgage rate by avoiding interest and PMI. Investing the cash could beat that — or lose. Risk tolerance and discipline decide.
Can I buy a house with no down payment?
VA loans (for eligible veterans and service members) and USDA loans (for qualifying rural areas) allow zero down. Some conventional programs offer 3% down with income limits.
Does the down payment include closing costs?
No. Closing costs — typically 2-5% of the purchase price for lender fees, title, and prepaids — are paid on top of the down payment at closing.
Should I use all my savings for the down payment?
Almost never. Homeownership brings repair costs from day one. Keep an emergency fund separate even if it means a smaller down payment and temporary PMI.