How much should you put down on a house?
The down payment is the part of the home price you pay in cash; the rest is the mortgage. A larger down payment means a smaller loan, a lower monthly payment and less interest, and with 20% or more on a conventional loan you avoid private mortgage insurance (PMI). A smaller down payment lets you buy sooner and keep cash for emergencies.
This down payment calculator works three ways:
- Cash — from the cash you have and the down payment you want, find the home price you can afford.
- Price — from the price and down payment, find how much cash you need, including closing costs.
- Both — from the price and your cash, find the down payment percentage you can make.
The monthly payment shown is principal and interest only. For the full cost with property tax, insurance and PMI, use the mortgage calculator.
How the down payment is calculated
- Down payment = home price × down payment %;
- Cash needed = home price × (down payment % + closing costs %);
- Home price you can afford = cash / (down payment % + closing costs %);
- Down payment % = (cash − closing costs) / home price.
Example: you have $100,000 and want to put 20% down, with closing costs of 3% of the price. Together they take 23% of the price, so you can afford a home of about $434,783: $86,957 down, $13,043 in closing costs and a $347,826 mortgage. At 7.18% for 30 years, the payment is about $2,356 a month.
The other way round, a $500,000 home with 20% down needs $100,000 for the down payment and $15,000 for closing costs — $115,000 in cash. If you have only $100,000, you can put down 17% of that price.
Minimum down payment by loan type
| Loan type | Minimum down | Mortgage insurance |
|---|---|---|
| Conventional | 3% | PMI below 20% down |
| FHA | 3.5% | Upfront and annual MIP |
| VA | 0% | None, funding fee |
| USDA | 0% | Guarantee fee |
| Jumbo | 10% to 20% | Varies by lender |
- Conventional: 3% down is usually for first-time buyers or income-limited programs; 5% is common otherwise.
- FHA: 3.5% needs a credit score of 580 or higher, 10% with a score of 500 to 579. See the FHA loan calculator.
- VA: for eligible service members and veterans. See the VA mortgage calculator.
- USDA: for homes in eligible rural and suburban areas, with income limits.
Cash needed by home price
The down payment plus closing costs of 3% of the price:
| Home price | 5% down | 10% down | 20% down |
|---|---|---|---|
| $250,000 | $20,000 | $32,500 | $57,500 |
| $300,000 | $24,000 | $39,000 | $69,000 |
| $400,000 | $32,000 | $52,000 | $92,000 |
| $500,000 | $40,000 | $65,000 | $115,000 |
| $600,000 | $48,000 | $78,000 | $138,000 |
5% down vs. 20% down
On a $400,000 home at 7.18% for 30 years:
| Down payment | Cash down | Loan amount | Monthly payment | Total interest |
|---|---|---|---|---|
| 5% | $20,000 | $380,000 | $2,574 | $546,731 |
| 20% | $80,000 | $320,000 | $2,168 | $460,405 |
Putting 20% down saves about $406 a month and $86,326 in interest, before PMI. With 5% down, PMI on a conventional loan typically adds 0.3% to 1.5% of the loan a year until you reach 20% equity. On the other hand, the smaller down payment leaves $60,000 in your pocket for repairs, moving and emergencies.
Where the down payment can come from
- Savings: the savings calculator shows how long it takes to reach your goal.
- Gifts from family: most loan programs allow them with a gift letter.
- Down payment assistance: many states and cities offer grants or low-cost second loans to first-time buyers.
- Retirement accounts: first-time buyers can take up to $10,000 from an IRA without the 10% early withdrawal penalty, and some 401(k) plans allow loans. This slows your retirement savings — see the 401(k) calculator.
Not sure how much home your income supports? The house affordability calculator starts from your income and debts, and the rent vs. buy calculator compares buying with renting.