MortgageAffordabilityTools

Down Payment Savings Calculator

Work out the total cash a purchase requires and how far current savings go toward it.

Last reviewed

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Free · No sign-up · Runs in your browser

Buyers save for a deposit and are then surprised by closing costs, which regularly add another two to five percent of the purchase price on completion day. The number that matters is the total, not the deposit.

This calculator reports both, the shortfall against what has been saved, and the loan-to-value that results - which determines whether mortgage insurance will apply.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Total cash needed

$103,500

Shortfall

$31,500

Deposit
$90,000
Closing costs
$13,500
Loan amount
$360,000
Loan to value
80%
Mortgage insurance likely?
No - loan starts at or below 80% LTV

Current savings cover 69.57% of the cash needed at closing.

Closing costs vary widely by state, lender and loan type. Use the percentage your lender quoted rather than the default.

How to use the down payment savings calculator

  1. Enter the target purchase price.
  2. Enter the deposit as a percentage of that price.
  3. Enter closing costs as a percentage - your lender can give a figure for your area.
  4. Enter savings available to see the shortfall.

What people use this for

  • Setting a savings target for a specific purchase price.
  • Deciding between buying sooner with a smaller deposit and waiting for 20%.
  • Checking whether closing costs have been accounted for.
  • Working out what price is reachable with current savings.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

Saving toward 20%

A $450,000 target with 20% down and 3% closing costs, against $72,000 saved.

Total cash needed
$103,500
Shortfall
$31,500
Mortgage insurance likely?
No - loan starts at or below 80% LTV

Buying sooner with 10% down

The same target with a 10% deposit, which brings the purchase within reach of current savings.

Total cash needed
$58,500
Shortfall
$0
Loan to value
90%

Waiting for 20% is not automatically right

A larger deposit avoids mortgage insurance and lowers the payment, and it also means more months of rent and more exposure to price movements. Neither outcome is predictable, which is why this is a judgement rather than a rule.

The comparison worth running is the annual cost of mortgage insurance against the cost of continuing to rent for the time it takes to reach 20%. Frequently the insurance is the cheaper of the two.

Keep something back

Emptying savings to reach a deposit removes the buffer at exactly the point a household acquires maintenance, repairs and the items an inspection did not find.

Lenders think the same way and many require documented reserves after closing. Sizing the deposit so a meaningful reserve survives is generally a better decision than minimising the loan.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • The deposit is the percentage applied to the purchase price; closing costs use their own percentage.
  • Loan-to-value is the resulting loan divided by the price, and PMI is flagged above 80%.
  • Seller credits, gift funds and assistance programmes are not modelled.
  • Results are estimates. Real quotes depend on credit, income, property, loan programme and lender pricing at the time of application.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator is provided for informational and educational purposes only. Results are estimates and may not reflect actual rates, fees, taxes, or market conditions.

This website is not a lender, a mortgage broker or a financial adviser. It does not originate loans, does not accept applications and does not forward your details to anyone.

Actual loan terms depend on credit history, income, the property, the loan programme and lender pricing at the time of application. Only a lender can tell you what you qualify for.

Frequently asked questions

How much should I budget for closing costs?

Typically two to five percent of the price depending on jurisdiction and loan type. Your lender can give a specific estimate.

Can a gift be used for a deposit?

Most programmes allow it with documentation showing it is a gift rather than a loan. Requirements differ by programme.

Is mortgage insurance permanent?

On most conventional loans it is removed once the balance reaches 80% of the original value. Some programmes carry it for the life of the loan.

Should I use all my savings?

Generally not. Reserves after closing matter for both the lender and for the household, particularly in the first year of ownership.

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