First-Time Home Buyer Cost Calculator

Compare total cash needed and monthly payment across common down payment tiers, including PMI.

The lowest cash needed at closing is $21,000 at 3% down, but the lowest monthly payment is $2,254 at 20% down — putting more down trades higher upfront cash for a lower payment (and no PMI at 20%+).

Down Payment	Down Payment $	Loan Amount	Monthly P&I	Monthly PMI	Total Monthly Payment	Closing Costs	Total Cash Needed
3%	$10,500	$339,500	$2,202	$212	$2,852	$10,500	$21,000
5%	$17,500	$332,500	$2,157	$208	$2,802	$10,500	$28,000
10%	$35,000	$315,000	$2,043	$197	$2,677	$10,500	$45,500
20%	$70,000	$280,000	$1,816	$0	$2,254	$10,500	$80,500

Estimates only, not financial, tax, or legal advice. See our Terms and Privacy Policy.

The biggest question most first-time buyers face isn't which house to buy: it's how much to put down. Putting down less gets you into a home sooner and keeps more cash in reserve, but it means a bigger loan, a bigger monthly payment, and, under 20% down, private mortgage insurance (PMI) on top of it. Putting down more shrinks the monthly payment and avoids PMI, but ties up a lot more cash at closing.

This calculator lays out that trade-off directly, comparing the total cash needed and total monthly payment across the usual down payment tiers first-time buyers weigh (3%, 5%, 10%, and 20%) on the exact same home and loan terms.

How does this calculator work?

Enter the home price, your expected interest rate and loan term, then your estimated property tax rate, homeowners insurance, HOA dues, closing cost rate, and PMI rate.

The calculator runs the same purchase through all four down payment tiers at once, computing the loan amount, monthly principal & interest, monthly PMI (automatically added under 20% down and removed at 20%+), and total cash needed at closing (down payment plus closing costs) for each.

Compare the tiers side by side in a table or chart, then drill into a full amortization schedule for whichever tier you select.

Worked example

A $350,000 home at 6.75% over 30 years, with 1.1% property tax, $1,400/yr insurance, no HOA, 3% closing costs, and 0.75% PMI, compared across down payment tiers.

3% down: $21,000 cash needed · $2,852/mo (incl. $212 PMI)
5% down: $28,000 cash needed · $2,802/mo (incl. $208 PMI)
10% down: $45,500 cash needed · $2,677/mo (incl. $197 PMI)
20% down: $80,500 cash needed · $2,254/mo (no PMI)

How the numbers work

Going from 3% to 20% down nearly quadruples the cash needed at closing ($21,000 to $80,500). Closing costs stay the same $10,500 across every tier, so all of that increase is the larger down payment itself.

The monthly payment doesn't fall nearly as fast, because a bigger down payment mainly saves on interest over a much larger loan balance, plus it removes PMI at 20% down. Going from 3% to 20% down cuts the payment by about $598/month, but takes on nearly $60,000 more in upfront cash to get there.

Notice PMI barely changes across the sub-20% tiers ($212 vs. $197) even though the loan amount shrinks. That's because PMI is priced as a percentage of the loan balance, so a smaller loan mostly just means a slightly smaller PMI premium, not a proportionally smaller one.

There's no universally "right" down payment. It's a trade-off between cash preserved today and payment (and PMI) avoided every month going forward. A buyer with strong cash reserves but tight monthly budget might favor a smaller down payment; one who's cash-constrained but has room in their monthly budget might prefer the reverse.

PMI isn't permanent on a conventional loan. Once your equity reaches roughly 20-22% through payments or appreciation, you can typically request its removal, so the PMI in a sub-20%-down scenario is a temporary, not lifetime, cost.

Before comparing tiers it helps to know the price range you can support at all, which the home affordability calculator estimates from your income and debts, and to compare lenders on true cost using APR rather than the rate alone. Once you own, extra principal can drop PMI sooner, as the extra payment schedule shows, and the full monthly payment breaks down on the home loan calculator.

First-Time Home Buyer Cost Calculator glossary

Private Mortgage Insurance (PMI): Insurance required on most conventional loans when the down payment is below 20%, protecting the lender (not you) if you default. It's added to your monthly payment and can typically be removed once you reach roughly 20-22% equity.
Total Cash Needed: The full amount due at closing: your down payment plus closing costs, before accounting for any seller credits or concessions.
Down Payment Tier: One of the common down payment percentages buyers compare: 3% and 5% (typical minimums for many first-time buyer programs), 10%, and 20% (the conventional threshold to avoid PMI).
Closing Costs: Fees paid at closing beyond the down payment, such as lender fees, title insurance, and appraisal, commonly estimated as 2-5% of the home price. See the Closing Costs Calculator for an itemized breakdown.
Monthly P&I: The principal-and-interest portion of your payment: the amortizing part of the loan, separate from taxes, insurance, HOA dues, and PMI.

First-Time Home Buyer Cost Calculator FAQs

What's the minimum down payment for a first-time buyer?+

It depends on the loan program: conventional loans commonly allow as low as 3% down for qualified first-time buyers, FHA loans allow 3.5% down, and some programs (VA, USDA) allow 0% down for eligible borrowers. This calculator compares the 3%, 5%, 10%, and 20% tiers most buyers actually weigh.

When does PMI go away?+

On a conventional loan, you can typically request PMI removal once your loan balance reaches 80% of the home's original value, and it must be automatically terminated at 78% under federal law, assuming you're current on payments. It doesn't apply at all once you put down 20% or more upfront.

Is putting more down always the better financial move?+

Not necessarily. A bigger down payment lowers your monthly payment and avoids PMI, but it also ties up cash that could otherwise cover an emergency fund, other investments, or renovation costs. Compare what you'd give up in liquidity against what you'd save monthly before deciding.

Does this calculator include first-time buyer assistance programs?+

No. It models a standard conventional purchase at the down payment tiers shown. Down payment assistance programs, grants, and below-market loan programs vary by state and lender, so check with a local housing agency or lender for programs you may qualify for.