What is Down Payment?
The Down Payment Calculator helps you figure out exactly how much you need to save for a home purchase and how long it will take at your current savings rate. In India, banks typically require 10-20% down payment — the rest is financed through a home loan.
Down payment requirements by lender: SBI requires 10-20% (up to 90% LTV for loans under ₹30L), HDFC requires 15-20%, ICICI requires 15-25%. Higher down payments get you better interest rates and lower EMIs.
Why 20% is the sweet spot: You avoid PMI/higher rates, your EMI is lower, you have instant equity in the property, and you're less likely to be underwater if property prices dip. However, 10-15% is acceptable if you're in a fast-appreciating market.
Save your down payment in: RD (Recurring Deposit) for disciplined monthly savings at 6.5-7.5%, FD (Fixed Deposit) for lump sums, or a debt mutual fund for slightly higher returns with moderate risk.
Formula
Down Payment = Property Price × Down Payment % Home Loan = Property Price − Down Payment
Months to save (with interest): Each month: Balance = Balance × (1 + monthly rate) + Monthly Savings Repeat until Balance ≥ Down Payment
Example — ₹50L property, 20% down, ₹30K/month savings at 7%: Down payment needed: ₹10,00,000 Months to save: ~30 months (2.5 years) Total saved with RD interest: ₹10,15,000
Down payment at different percentages: 10%: ₹5,00,000 → ~16 months 15%: ₹7,50,000 → ~23 months 20%: ₹10,00,000 → ~30 months 25%: ₹12,50,000 → ~37 months
How to use this Down Payment Calculator?
1. Enter the property price you're targeting. 2. Select down payment percentage (20% is recommended). 3. Enter how much you can save monthly toward the down payment. 4. Enter expected return on savings (7% for RD/FD). 5. See exact down payment amount, loan amount, and months to save.