Down Payment Savings Calculator
Calculate how long it'll take to save for a down payment on a home, factoring in your current savings, monthly contribution, and investment return.
What this calculates
The down payment is usually the biggest hurdle to home ownership. This calculator tells you how long it'll take to save based on your target home price, the percentage you want to put down, what you already have set aside, and how much you can add each month. It also factors in interest earned while saving.
Formula & how it works
Down payment target = home_price × down_percent. With a constant savings rate s and return r/12 monthly: balance(t) = current × (1+r/12)^t + s × ((1+r/12)^t − 1) / (r/12). Solve for t when balance ≥ target. The interest earned while saving is meaningful — even at 4 % APY, the timeline shortens by 3–6 months for typical scenarios.
Worked example
$400K home, 20 % down → $80K target. Currently have $25K, saving $1,500/month, 4 % HYSA return. After 3 years: $25K grows to $28.2K, plus $1,500 contributions × 36 months with monthly compounding ≈ $57.4K. Total ≈ $85.6K — exceeds target. Time to goal: ~33 months.
Frequently asked questions
How much do I really need down?
Conventional loans: 5–20 %. FHA loans: 3.5 %. VA loans (US): 0 %. Below 20 % means paying PMI in the US. The 20 % target avoids that but isn't legally required.
Where should this money sit?
High-yield savings (4–5 % currently) for short timelines (under 3 years). CDs locked to your target date for predictable returns. Stock market is risky for sub-5-year horizons.
Should I include closing costs?
Yes, add 2–5 % of price to your target. Often forgotten until late in the process. Many first-time programs help with closing costs separately.
What's PMI?
Private mortgage insurance — required when down payment is below 20 % on a conventional loan. Costs 0.3–1.5 % of loan annually, automatically cancels around 22 % equity.
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