Quick answer: Down payment = home price x down payment %. A $400,000 home with 20% down = $80,000. Typical US buyers put down 5-20%; conventional minimums start at 3%, FHA at 3.5%, and VA/USDA need 0%. Putting down 20% avoids PMI.
Last reviewed: October 2026
Key facts
- Down payment = price x %: 20% on $300,000 = $60,000.
- Typical US buyer puts down about 15% (~$64,000).
- Minimums: conventional 3-5%, FHA 3.5%, VA/USDA 0%.
- Below 20% down on a conventional loan means paying PMI until you reach 20% equity.
A down payment calculator for houses and cars: enter the price, down payment %, interest rate, loan term, what you have saved and your monthly savings. This free calculator shows the down payment amount, loan amount, how many months it takes to save, and the estimated monthly payment.
Enter the price, the down payment percentage, the loan rate and term, what you have saved so far and how much you save each month. The calculator shows the down payment needed, the loan amount, the months left to save, and the estimated monthly payment.
How to use
- Enter the price (home or car).
- Enter the down payment % you are targeting.
- Enter the loan rate and term for the monthly payment estimate.
- Enter what you have saved so far and your monthly savings.
- Click Calculate to see your savings timeline and monthly payment.
Down payment formulas
Worked examples
$400,000 house, 20% down
Down payment = 400000 x 20% = $80,000. Loan = $320,000. Saved so far: $20,000; still needed: $60,000; saving $1,500/month = 40 months. Monthly P&I at 6.5% for 30 years = $2,023. No PMI with 20% down.
$30,000 car, the 20/4/10 rule
Down payment = 30000 x 20% = $6,000. Loan = $24,000. Monthly payment at 6% for 60 months = $464. This follows the popular 20/4/10 rule: 20% down, a loan of no more than 4 years, and total car costs under 10% of gross income.
Down payment minimums by loan type (USA)
| Loan type | Minimum down | PMI / insurance |
|---|---|---|
| Conventional | 3-5% | PMI until 20% equity |
| Jumbo | 10-20% | Varies by lender |
| FHA | 3.5% | MIP for life of loan (or 11 years at 10%+ down) |
| VA | 0% | Funding fee instead of PMI |
| USDA | 0% | Guarantee fee; rural homes only |
Frequently asked questions
How much down payment do I need for a house?
There is no universal number. Conventional loans start at 3-5% down, FHA at 3.5%, and VA/USDA need nothing down. 20% avoids PMI but is not required; the typical US buyer puts down about 15%.
Is 20% down required?
No. It is the traditional benchmark because it avoids PMI and gets the best terms, but low-down-payment programs are mainstream. About 20% on $300,000 is $60,000, which is out of reach for many buyers, so 3-5% programs exist for exactly that reason.
What is PMI and when do I pay it?
Private mortgage insurance protects the lender if you default. On a conventional loan with less than 20% down, you pay PMI (typically 0.5-1% of the loan per year) until you reach 20% equity, when you can request cancellation.
How much should I put down on a car?
The 20/4/10 rule is the standard US guidance: 20% down, finance for no more than 4 years, and keep total car costs under 10% of your gross income. On a $30,000 car that is $6,000 down.
Does a bigger down payment lower my monthly payment?
Yes, directly: a bigger down payment shrinks the loan amount, and the monthly payment is calculated on that smaller balance. It also cuts total interest and can qualify you for a lower rate.
Should I count closing costs on top of the down payment?
Yes. Closing costs are separate from the down payment and typically run 2-5% of the home price, so budget for both. On a $400,000 home, 20% down is $80,000 and 3% closing costs add $12,000, for $92,000 upfront before prepaid taxes and insurance.
Can a gift or down payment assistance cover my down payment?
Often, yes. Many conventional and FHA loans allow gifted funds from family with a signed gift letter stating the money need not be repaid, and state and local down payment assistance programs can cover part or all of the down payment for qualifying buyers. Lender rules vary, so confirm what your loan program accepts before you rely on it.
Related: House Affordability Calculator: What You Can Afford
Sources
Key takeaways
- Down payment = price x %; 20% on $300,000 = $60,000.
- Minimums run from 0% (VA/USDA) to 3.5% (FHA) to 3-5% (conventional).
- Below 20% down means PMI; use the savings timeline to plan your goal.
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