How Much Down Payment Do First-Time Buyers Need?
A Beginner-Friendly Calculator + Cash-to-Close Breakdown
Source: Tamura Designs
A Simpler Way To Plan For Your First Home Purchase
Buying your first home can feel confusing, so I built this down payment calculator for first-time home buyer budgets. It shows you your down payment, closing costs, and real cash-to-close in a way that finally makes sense.
With just two inputs, the home price and interest rate, our calculator estimates your down payment options, monthly payment, closing costs, and your total cash-to-close. As a first-time buyer things are stressful enough, we want to give you simple numbers you can understand.
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Avg. First-Time Buyer Down Payment
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What people think they need for down payment
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Minimum Down Payment Required
Down Payment Calculator
A simple tool for first-time home buyers
Down Payment Calculator for First-Time Home Buyers
Enter a home price and interest rate to see example down payment options, estimated closing costs, total cash to close, and a rough monthly payment. This is a simplified estimate and does not include taxes, insurance, or HOA fees.
How to Use This Down Payment Calculator
Step-By-Step
Enter Your Home Price
Start with the price of a home you’re considering. This determines most of your down payment numbers.
Add the Interest Rate
Use the current mortgage rate (or the rate you were quoted) for the most accurate monthly payment estimate.
Calculate
Click “Calculate” to instantly generate your estimated down payment, closing-cost range, total cash-to-close, and rough monthly payment.
Compare Your Down Payment Options
View side-by-side estimates for 3%, 5%, 10%, and 20% down-payment scenarios. This includes total cash required at closing and monthly payment changes.
Use Your Results to Build a Realistic Budget
Your estimate shows what you’ll realistically need at closing.
Use this number to plan your savings, timeline, and avoid financial surprises.
First-Time Buyer Basics
Understanding the Pieces of Your Down Payment
What Your Down Payment Really Covers
I used to think the down payment was just “money toward the house,” but it actually affects much more.
Your down payment changes your interest rate, as well as whether you’ll owe mortgage insurance, and even how competitive your offer looks. It also determines how much your monthly payment will be. Understanding this early gives you real control over your budget.
Closing Costs - Explained In Simpler Terms
This surprised me during my own research, the down payment isn’t the only cost you save for.
Closing costs include the appraisal, lender fees, title work, and taxes. They usually add 2–5% of the home price on top of your down payment. For an official breakdown of common closing costs, visit the Consumer Finance Protection Bureau’s guide.
Your “Cash to Close” Number
This is always the number first-time buyers actually want which is the real amount you need to walk into closing.
Cash-to-close = down payment + closing costs − any credits. These estimates come directly from our down payment calculator for first-time home buyer planning, so you can trust the numbers as you map out your budget.
Why this matters
We Built This Calculator to Make Home Buying Feel More Predictable
When I first started researching first-time home buying, everything felt unclear. Calculators gave different results, and most articles assumed you already understood mortgage terms. If you’re still learning the basics, our First-Time Home Buyer Guide is a great place to start.
This calculator simplifies everything by asking for just two inputs:
• Home price
• Current interest rate
From those, you instantly get the four numbers first-time buyers care about most:
• Down payment
• Closing cost range
• Total cash-to-close
• Estimated monthly payment
My goal was to make a clear calculator that helps break down costs, so you can finally look at buying a home and think, “I understand this.”
Source: Freepik
$250,000 Example Breakdown
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3% Down Payment
- Down Payment: $7,500
- Closing Costs (2–5%): $5,000–$12,500
- Total Cash to Close: $12,500–$20,000
- Est. Monthly Payment: ~$1,075/mo
5% Down Payment
- Down Payment: $12,500
- Closing Costs: $5,000–$12,500
- Total Cash to Close: $17,500–$25,000
- Est. Monthly Payment: ~$1,020/mo
10% Down Payment
- Down Payment: $25,000
- Closing Costs: $5,000–$12,500
- Total Cash to Close: $30,000–$37,500
- Est. Monthly Payment: ~$945/mo
$300,000 Example Breakdown
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3% Down Payment
- Down Payment: $9,000
- Closing Costs (2–5%): $6,000–$15,000
- Total Cash to Close: $15,000–$24,000
- Est. Monthly Payment: ~$1,227/mo
5% Down Payment
- Down Payment: $15,000
- Closing Costs: $6,000–$15,000
- Total Cash to Close: $21,000–$30,000
- Est. Monthly Payment: ~$1,168/mo
10% Down Payment
- Down Payment: $30,000
- Closing Costs: $6,000–$15,000
- Total Cash to Close: $36,000–$45,000
- Est. Monthly Payment: ~$1,090/mo
$400,000 Example Breakdown
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3% Down Payment
- Down Payment: $12,000
- Closing Costs (2–5%): $8,000–$20,000
- Total Cash to Close: $20,000–$32,000
- Est. Monthly Payment: ~$1,550/mo
5% Down Payment
- Down Payment: $20,000
- Closing Costs: $8,000–$20,000
- Total Cash to Close: $28,000–$40,000
- Est. Monthly Payment: ~$1,480/mo
10% Down Payment
- Down Payment: $40,000
- Closing Costs: $8,000–$20,000
- Total Cash to Close: $48,000–$60,000
- Est. Monthly Payment: ~$1,395/mo
New to home buying
About The Creator
Brooke Ricketson
Digital Marketing Student
Brooke Ricketson is a digital marketing student with a passion for all things real estate. As someone actively planning and saving for her first home, she understands how overwhelming the process can feel for first-time buyers. Brooke created NewToHomeBuying.com to simplify the research, break down confusing terms, and share the tools she wishes she had when she started her own home-buying journey.
