Down Payment Calculator — Plan Your Home Purchase Savings — USA 2026
Calculate how much down payment you need for a home and how long it will take to save. Compare 5% 10% and 20% down payment scenarios with monthly savings.
The down payment is often the biggest hurdle to homeownership. In India most banks require 10-25% down payment while in the US conventional loans require 5-20% with PMI applying below 20%. Our calculator helps you determine the exact amount needed set a monthly savings target and see how long it takes to reach your goal. Planning your down payment early and investing wisely can accelerate your homeownership timeline by years.
How much down payment for a $400000 home?
At 20% down you need $80000 to avoid PMI. At 10% down you need $40000 but will pay PMI of $150-$250/month. At 5% down you need $20000 with higher PMI of $200-$350/month. On a $400000 home putting 20% down instead of 5% saves approximately $45000-$75000 over the life of the loan through avoided PMI and lower interest costs.
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Down Payment Calculator
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| US Conventional Loan Minimum | 3% - 5% down payment |
| US FHA Loan Minimum | 3.5% down payment |
| India Home Loan Minimum | 10% - 20% down payment |
| PMI Cost (below 20% down) | $100 - $300/month typical |
Plan your down payment savings
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Use Calculator NowFrequently Asked Questions
How much down payment for a $400000 home?
At 20% down you need $80000 to avoid PMI. At 10% down you need $40000 but will pay PMI of $150-$250/month. At 5% down you need $20000 with higher PMI of $200-$350/month. On a $400000 home putting 20% down instead of 5% saves approximately $45000-$75000 over the life of the loan through avoided PMI and lower interest costs.
How long will it take to save for a down payment?
If you need $60000 and can save $2000/month it takes 30 months in a regular savings account. Investing in a conservative bond fund earning 5% reduces the time to 28 months. Saving $3000/month cuts it to 20 months. Start a dedicated down payment fund separate from other savings and automate monthly transfers to stay on track.
Is it better to put more down or invest the difference?
Putting 20%+ down avoids PMI and reduces your monthly payment and total interest. However if you can earn higher returns investing (8-10% in stocks vs 6-7% mortgage rate) keeping a smaller down payment and investing the difference may build more wealth mathematically. The best approach depends on your risk tolerance and whether you qualify for a competitive rate with less down.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Should I invest regularly or as a lump sum?
Regular investing (dollar-cost averaging) smooths out market volatility by buying at various price points. Lump sum investing works better if markets are undervalued. For most people, regular monthly investing is simpler and more disciplined.
How much should I invest monthly to reach my goal?
The amount depends on your target, timeline, and expected returns. Use this calculator to model different scenarios. The key factors are starting early, investing consistently, and reinvesting returns.
Are investment returns taxable?
Tax treatment varies by investment type and country. Capital gains, dividends, and interest income may be taxed differently. Consult a tax professional for advice specific to your situation and jurisdiction.
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Last updated: March 2026