Down Payment Calculator
Calculate your down payment amount and how long it will take to save with compound interest on your savings.
How Much Down Payment Do You Really Need in 2026?
The conventional wisdom of “save 20% to avoid PMI” is only part of the picture. Yes, 20% down eliminates PMI and gives you better rates. But waiting to save 20% on a $450,000 home means accumulating $90,000 in savings — which can take 5-7 years for many households. Meanwhile, if that home appreciates 4% annually, you've missed $18,000 in appreciation per year.
Many first-time buyers use 3-5% down programs (Fannie Mae HomeReady, FHA, state housing finance agency programs) to enter the market sooner. With a 5% down payment of $22,500 on a $450,000 home, your monthly PMI at 0.9% adds about $320/month — a real cost, but potentially justified if the market is appreciating.
Beyond the Down Payment
Remember that your down payment isn't your only upfront cost. Budget an additional 2-3% for buyer closing costs ($9,000-$13,500 on a $450,000 home), plus 2-3 months of mortgage reserves many lenders require. Total cash needed at closing is often 25-35% above the down payment alone.