Down Payment Savings Plan Calculator
Turn a home price and a savings habit into a timeline: how long until your down payment (plus interest) is ready.
How it works
Target = home price × down payment % · balance = balance × (1 + APY/12) + monthly, month by month until balance ≥ target
A down payment is a fixed savings goal with a moving finish line — the more you save each month and the higher your account yield, the sooner you arrive. Parking the money in a high-yield savings account or a short CD ladder lets interest shoulder part of the goal, especially in the final years when the balance is large. This calculator compounds your monthly deposits at the account rate and counts the months until you cross the target.
Worked example
For a $400,000 home with 20% down, the target is $80,000. Starting with $15,000 and saving $1,500 a month at a 4% APY, the balance reaches $80,000 in about 3 years and 4 months, with roughly $3,000 of that coming from interest.
Frequently asked questions
How much down payment do I need?
Conventional loans often target 20% to avoid mortgage insurance, but many programs allow 3–5%. A larger down payment lowers your loan, your monthly payment and your interest over the life of the mortgage.
Where should I keep down-payment savings?
Because the time horizon is short, most people avoid the stock market and use a high-yield savings account, money market fund, or CD ladder — safe places that still earn meaningful interest.
Should I factor in closing costs?
Yes — closing costs typically run 2–5% of the price on top of the down payment. Add them to your target if you want the plan to cover everything due at signing.
Related calculators
Educational estimate, not financial advice. Investment returns are not guaranteed.