Down Payment Calculator

About the Down Payment Calculator

The down payment and deposit calculator helps you plan your path to homeownership with full clarity on exactly how much you need to save, how long it will take at your current savings rate, and how different deposit sizes affect your monthly repayments and total loan cost. The deposit is the single largest barrier to homeownership for most buyers — it requires discipline over years, strategic saving choices, and an understanding of how the deposit size interacts with every other financial variable in the purchase. The relationship between deposit size and total cost of ownership is not linear: the difference between a 5% and 20% deposit is not just 15% of the purchase price — it is the difference between paying tens of thousands in Lenders Mortgage Insurance (LMI/PMI) or nothing, receiving the best interest rates or paying a risk premium, and having meaningful equity buffer against a price fall or being immediately underwater if prices dip. Our calculator presents three standard deposit scenarios — 5%, 10%, and 20% — side by side so you can see the full financial impact of each choice in terms of time to save, monthly repayment, and LMI cost. The 5% deposit scenario is available to most buyers through mainstream lenders and is the entry point for those in a hurry to enter the market. The additional LMI premium and higher loan balance means you pay more per month and much more over the full loan term. In Australia, the First Home Guarantee scheme allows eligible first home buyers to purchase with 5% deposit without paying LMI — the government guarantees 15% to the lender, eliminating the LMI cost entirely for qualifying buyers. The 10% deposit halves the time to save compared to 20% but still typically attracts LMI, usually at a lower premium than 5%. The 20% deposit threshold eliminates LMI entirely and opens all lenders and rate products. Whether saving to 20% makes financial sense depends critically on the rate of property price growth in your target market — in a market growing at 8–10% per year, each month spent saving means a proportionally more expensive home, potentially negating the LMI saving. In stable or flat markets, taking the time to save 20% is almost always the better financial choice. The savings progress bar and timeline show exactly when you will reach your target based on current savings and monthly savings rate, and you can adjust both to model different scenarios — such as redirecting a bonus payment to the deposit, or reducing discretionary spending to increase monthly savings.

How It Works

Target Deposit = Home Price × Deposit%. Loan Amount = Home Price − Deposit. LMI applies when Loan ÷ Home Price > 80%. LMI estimate: 85% LTV = 1.0% × loan; 90% = 2.0% × loan; 95% = 3.5% × loan. Monthly Repayment = Loan × [r(1+r)^n / ((1+r)^n − 1)] where r = monthly rate, n = months. Total Interest = Monthly Payment × n − Loan Amount. Months to save = ceil((Target Deposit − Current Savings) ÷ Monthly Savings). Example: $500,000 home, 20% deposit, 6.5% rate, 30 years, $60,000 current savings, $2,000/month saving. Target = $100,000. Remaining = $40,000. Months to save = ceil($40,000 / $2,000) = 20 months. Loan = $400,000. Monthly repayment = $2,528. No LMI.

Tips & Best Practices

• ✓In Australia, the First Home Super Saver Scheme (FHSS) allows you to save up to $15,000 per year (maximum $50,000 total) inside your superannuation fund as voluntary contributions, then withdraw the savings plus associated earnings for a first home deposit. The tax saving versus saving in a standard bank account is typically $2,000–$5,000 on a $30,000 contribution, depending on your marginal rate.
• ✓Lenders Mortgage Insurance protects the lender, not you. If you default, the LMI insurer pays the lender's loss and then pursues you for the amount — so LMI does not reduce your personal liability in any way.
• ✓A $20,000 gift from family toward your deposit must usually be evidenced by a statutory declaration that it is a gift, not a loan, for the lender to include it in genuine savings. Check your lender's gifting policy before assuming parental or family contributions count toward the required deposit.
• ✓Genuine savings: most lenders require that a portion of your deposit (typically 5% of the property price) has been held in your account for at least 3 months — demonstrating a pattern of saving rather than a one-time transfer. Planning for this before your application avoids delays.
• ✓Interest rates on savings accounts versus property price growth rates are the key comparison when deciding whether to wait and save more. If your high-interest savings account earns 5% but the property market in your target suburb grows at 8–10%, you are falling further behind in real terms each month you delay.
• ✓Rentvesting — buying an investment property in an affordable area while continuing to rent in your preferred area — allows buyers who cannot afford to buy where they want to live to enter the market with a smaller deposit, build equity, and eventually use that equity to purchase in their preferred location.
• ✓The First Home Guarantee in Australia (previously the First Home Loan Deposit Scheme) supports 35,000 places per year for eligible buyers with 5% deposit and no LMI. Places fill quickly at the start of each financial year — register with an eligible lender early if you plan to use this scheme.
• ✓Offset accounts and redraw facilities allow extra repayments to reduce the effective interest charged while keeping funds accessible. Rather than simply saving in a bank account toward your next property or renovation, depositing savings into your mortgage offset account saves interest at your mortgage rate — effectively earning your mortgage rate tax-free on every dollar offset.

Who Uses This Calculator

First home buyers setting their savings goal model how their current monthly savings rate translates into a completion date and adjust their lifestyle budget accordingly. Buyers deciding between saving for 5%, 10%, or 20% compare the immediate cost saving of entering sooner (no missed capital growth, earlier equity building) against the long-term cost of LMI and higher repayments. People who have received a gift or inheritance model how a lump sum accelerates their timeline. Couples combining finances calculate how dual income savings rates dramatically compress the time to deposit compared to single income. Buyers who qualify for government first home buyer grants add the grant amount to current savings to recalculate their readiness date. People in rent-heavy cities compare the cost of LMI against the cost of renting for another 18 months while saving more deposit — the calculator gives both numbers for an honest comparison.