Down Payment Savings Calculator
Work out how long it takes to save your target down payment given what you set aside each month and the return you earn.
How it works
Target = price × down% · Each month: balance = balance × (1 + APY ÷ 12) + monthly, counted until balance ≥ target
The down payment is usually the biggest hurdle to buying, so the useful question is how long the gap takes to close. This calculator grows your current savings and each monthly contribution at your expected return, month by month, until the balance reaches the goal (down payment percentage of the target price). Because interest compounds, a higher return or an earlier start meaningfully shortens the timeline — and parking a house fund in a high-yield account rather than a checking account can shave months off the wait.
Worked example
A $400,000 home at 20% down needs $80,000. Starting with $20,000 and adding $1,500 a month in an account earning 4%, the balance passes $80,000 in roughly 3 years — a few months sooner than the ~3.3 years it would take with no interest at all.
Frequently asked questions
How much down payment do I actually need?
20% avoids private mortgage insurance and gets the best rates, but it is not required. Conventional loans allow as little as 3% down, FHA loans 3.5%, and VA/USDA loans can be zero down — at the cost of PMI or funding fees and higher monthly payments.
Should I count closing costs too?
Yes, in practice. Closing costs typically add 2–5% of the price in cash due at signing, on top of the down payment. Bump your savings target up by that amount so you are not caught short at the table.
Where should I keep a down-payment fund?
If you plan to buy within a couple of years, favor safety: a high-yield savings account, money-market fund or short-term CDs. Money you might need soon generally should not sit in volatile stocks.
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Educational estimate, not financial or real-estate advice. Actual costs, rates and returns vary by lender, market and property.