Cash-to-close planning example

How Much Money Do You Need to Buy a $400K House?

With this page's 5%-down and 3%-closing-cost samples, you would have $32,000 still due at closing and a $39,000 total savings target. The difference is the illustrative moving budget and savings you choose to keep after buying.

Published by HomeBuyersPath · September 9, 2026

Worked $400K example

Down payment is only one part of the cash plan

The opening example combines a $20,000 down payment with $12,000 in modeled closing costs. It also sets aside $2,000 for moving and immediate repairs and $5,000 to keep in savings after buying.

Still due at closing: $32,000; What remains for the purchase after any deposit and usable seller credit.
Total savings target: $39,000; Purchase costs plus the moving budget and retained savings in this example.

Home price: $400,000
Down payment: $20,000 · 5%
All closing costs: $12,000 · 3% of price
Earnest money already paid: $0
Requested seller credit: $0
Moving and immediate repairs: $2,000
Savings to keep after buying: $5,000

The moving and retained-savings amounts are examples you can replace. They are not researched averages, lender requirements, or HomeBuyersPath recommendations.

How the down payment changes the cash needed

These three examples keep the $400,000 price, 3% sample closing costs, $0 deposit, $0 seller credit, $2,000 moving budget, and $5,000 retained savings unchanged. Only the down payment changes.

5% down · $20,000

Opening example

Still due at closing: $32,000
Total savings target: $39,000

10% down · $40,000

Same surrounding samples

Still due at closing: $52,000
Total savings target: $59,000

20% down · $80,000

Same surrounding samples

Still due at closing: $92,000
Total savings target: $99,000

A larger down payment raises the cash used upfront and reduces the amount borrowed. No option here is labeled best, required, or recommended. Actual closing costs can also change with the financing structure and transaction.

How a deposit and seller credit change the figures

These examples return to the opening 5%-down scenario. They show the difference between money already paid and a cost reduction.

Opening example

$0 deposit · $0 seller credit

Still due at closing: $32,000
Total savings target: $39,000

$5,000 deposit already paid

$0 seller credit

Still due at closing: $27,000
Total savings target: $39,000

$5,000 deposit + $3,000 seller credit

Credit assumed agreed and eligible

Still due at closing: $24,000
Total savings target: $36,000

An earnest-money deposit changes payment timing. The $5,000 deposit is money already paid toward the transaction, so it lowers what remains to be brought to closing from $32,000 to $27,000. It remains part of the overall $39,000 savings target.

An eligible seller credit reduces modeled purchase costs. With that same deposit and an agreed, eligible $3,000 credit, the example falls to $24,000 still due and a $36,000 savings target. In this calculator, seller credits apply only to eligible closing costs, subject to the modeled limits. They cannot pay your down payment; excess requested credits are excluded, not treated as cash back. Seller credits are not guaranteed or universally permitted; the contract, costs, loan program, and credit limits determine what can be used.

Closing costs depend on the assumption you enter

The opening example uses one all-in percentage: 3% of $400,000, or $12,000. In the calculator, percentage mode already represents the modeled lender fees, other settlement costs, prepaids, and initial escrow together.

4% sensitivity example

At 4%, modeled closing costs rise to $16,000.

With every other opening input unchanged, that produces $36,000 still due at closing and a $43,000 total savings target.

This sensitivity example shows what happens when the entered percentage changes; it is not a stated market range. If you choose itemized mode, its lender fees, third-party costs, and prepaids replace the percentage estimate instead of being added to it. Confirm actual figures with your lender, title company, insurer, and closing agent.

Would $40,000 or $60,000 be enough in these examples?

What about $40,000 saved?

Under this page's 5%-down, 3%-closing-cost sample, a $40,000 savings balance is about $1,000 above the modeled $39,000 total savings target. Actual closing costs, available financing, deposits or credits, the savings you want to retain, and ongoing affordability can change that answer.

What about $60,000 saved?

Under the modeled 10%-down example with the same surrounding samples, a $60,000 savings balance is about $1,000 above the $59,000 total savings target. It is a conditional comparison, not a conclusion that the purchase or monthly payment fits your household.

What does 20% down change?

Twenty percent down is $80,000 on a $400,000 home. With this page's other samples, the result is $92,000 still due and a $99,000 savings target. This example does not make 20% a requirement or recommendation.

Cash needed is only one decision. Check the estimated monthly cost with the mortgage payment calculator, compare the price with the affordability calculator, and use this guide: Check whether the monthly payment fits your household budget.

Replace the samples

Build your own cash plan

Open the cash-needed calculator, enter $400,000, and replace the sample down payment, closing costs, moving budget, and savings cushion with your own estimates. The calculator opens normally and will not overwrite or automatically save your current working inputs.

Calculate your cash needed →Read the first-time buyer guide

Optional planning download

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Compare homes and mortgage offers, organize estimated costs, and plan your next steps with our optional Excel toolkit.

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Methodology and limitations

HomeBuyersPath generated every displayed result with the same shared cash-to-close calculation used by the calculator. The method adds the down payment and the selected closing-cost estimate, subtracts an eligible seller credit, and then subtracts a deposit already paid to show what remains due. The total savings target adds the visitor's moving budget and desired retained savings to modeled purchase costs; the deposit is already part of that target.

These are educational planning estimates, not lender, title, insurance, or closing-agent quotes. They do not determine loan qualification or recommend a down payment or savings level. The calculator does not model every transaction adjustment or every FHA, VA, or USDA-specific fee rule. The retained savings amount is chosen by the visitor and is not a lender reserve requirement.

Read the full calculator methodology, limitations, and sources. Displayed amounts are rounded to whole dollars, while the shared calculation retains its underlying precision.