Budget and qualifying
Down Payment Savings Calculator: How Long Until You Can Buy?
Set a target home price and down payment, then see your savings goal, how far you are from it and how many months of saving it will take.
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Down payment savings
Results
In plain words
To buy a $325,000 home with 3.5% down and 3% for closing costs, you need $21,125. You still need $15,125. Saving $600 a month at 4% a year, you would reach your goal in 24 months (2 yrs 0 mo).
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Key figures
- Time to reach your goal24 months (2 yrs 0 mo)
- Goal reachedNov 2028
- Savings goal (down payment + closing)$21,125
- Still to save$15,125
- Down payment$11,375
- Closing costs$9,750
- Your deposits
- Interest earned
View chart as table
| Year | Your deposits | Interest earned |
|---|---|---|
| Year 1 | $13,200 | $378 |
| Year 2 | $20,400 | $1,065 |
| Year 3 | $27,600 | $2,073 |
Compare scenarios
| Scenario | Time to reach your goal | Monthly savings |
|---|---|---|
| Your numbers | 24 months (2 yrs 0 mo) | $600 |
| +$200 | 18 months (1 yrs 6 mo) | $800 |
| +$500 | 14 months (1 yrs 2 mo) | $1,100 |
| Difference: +$200 | −6 months (0 yrs 6 mo) | +$200 |
| Difference: +$500 | −10 months (0 yrs 10 mo) | +$500 |
Savings by year
| Year | Your deposits | Interest earned | Balance |
|---|---|---|---|
| Year 1 | $13,200 | $378 | $13,578 |
| Year 2 | $20,400 | $1,065 | $21,465 |
| Year 3 | $27,600 | $2,073 | $29,673 |
How to use this calculator
- Enter the price of the home you hope to buy.
- Choose your down payment percentage and an estimate for closing costs.
- Enter what you have already saved and what you can add each month.
- Enter the yearly rate your savings earn, or 0 if you are not earning interest.
- Read your goal, the gap and how many months it will take, then try a different down payment or monthly amount.
Saving for a home is easier when you know the finish line. This calculator turns a target price into a real savings goal, including closing costs that many first-time buyers forget, and tells you how many months it will take at the pace you can manage.
How this down payment savings calculator works
First it sets your goal: the down payment plus closing costs, both as a share of the price.
Savings goal = price × (down payment % + closing cost %)
Then it adds your savings month by month. Each month your balance earns one month of interest, and then your new deposit is added:
New balance = old balance × (1 + yearly rate ÷ 12) + monthly savings
It counts the months until the balance reaches the goal. If you have already saved enough, the answer is zero. The gap is the goal minus what you have now, before any interest or new deposits.
Worked examples
Example 1: FHA-style 3.5% down on a $325,000 home
Assume a $325,000 target price, 3.5% down, 3% for closing costs, $6,000 already saved, $600 added each month and 4% a year earned on savings.
- Goal: $325,000 × (3.5% + 3%) = $325,000 × 6.5% = $21,125.
- Gap: $21,125 − $6,000 = $15,125.
- Monthly interest rate: 4% ÷ 12 = about 0.333%.
- After 23 months the balance is about $20,795, just short. After 24 months it is about $21,465, so the goal is reached in 2 years.
- With no interest at all, it would take 26 months. The 4% rate saves about two months.
Example 2: 10% down versus 5% down on a $300,000 home
A buyer has $15,000 saved and adds $1,000 a month in an account that pays nothing.
- 10% down plus 3% closing: the goal is $39,000, the gap is $24,000, and it takes 24 months.
- 5% down plus 3% closing: the goal is $24,000, the gap is $9,000, and it takes 9 months.
Choosing 5% down means buying more than a year sooner. The trade-off is a bigger loan and, on a conventional loan, a higher PMI cost. Use the mortgage payment calculator to see both payments before you decide.
What your result means
The months figure is how long you need to keep saving at the current pace. If it feels too long, change the inputs one at a time: a lower price, a lower down payment percentage or a higher monthly amount. The goal is the cash you need at closing, and the gap is how much you still have to find from savings, gifts or assistance.
Keep a separate emergency fund. Lenders may ask for reserves after closing, and new homeowners often face repairs in the first year.
Program rules that change the answer
| Loan type | Typical minimum down payment | Notes |
|---|---|---|
| Conventional (HomeReady, Home Possible) | 3% | PMI until you reach 80% of the original value |
| Conventional (other) | Varies by program and borrower | 20% down avoids PMI |
| FHA | 3.5% with a 580+ score; 10% with 500 to 579 | Upfront and annual MIP |
| VA | 0% | Funding fee unless exempt |
| USDA | 0% | Eligible rural areas and income limits apply |
On VA and USDA loans your goal may be closing costs only, so set the down payment to 0%. Our guide to down payment assistance programs explains how grants and forgivable loans can cover part of the goal, and the mortgage requirements by loan type guide compares each program’s minimums.
Assumptions
- Closing costs are a flat percentage of the price; real costs depend on your state, lender and loan.
- Interest compounds monthly at a fixed rate; deposits are made at the end of each month.
- The home price stays the same while you save. In a rising market, your goal may grow too.
- Taxes on interest, account fees and withdrawals are not included.
- The calculator stops counting at 100 years and shows “Not reached” beyond that.
Common mistakes
- Saving only for the down payment. Closing costs can add thousands of dollars to the cash you need.
- Counting money you will need after closing. Moving costs, furniture and repairs come out of the same pot.
- Using an optimistic return. Money you need within a few years usually belongs in a safe account, so use a modest rate.
- Ignoring seller or lender credits. These can lower your cash at closing but may come with a higher price or rate.
- Forgetting price changes. Re-run the numbers every few months with current local prices.
Limits of this estimate
This tool estimates a savings timeline, not what you will qualify for. When you are close to your goal, ask a lender for a Loan Estimate, which lists the actual closing costs and cash to close. Check what price your income supports with the home affordability calculator. A HUD-approved housing counselor can help you build a savings plan and find local assistance programs.
For context, the national average 30-year fixed rate was 7.40% as of October 15, 2026 (Freddie Mac). FHA, VA and USDA rates are set by each lender and often differ.Source: Freddie Mac Primary Mortgage Market Survey, via FRED
Frequently asked questions
How much do I need to save to buy a house?
Add your down payment and closing costs. On a $325,000 home with 3.5% down and 3% for closing costs, that is $21,125. Lenders may also want to see some money left over after closing, called reserves, so a little extra helps.
Do I really need 20% down?
No. Many conventional loans allow 3% down, FHA allows 3.5% with a credit score of 580 or higher, and VA and USDA loans can need nothing down. Putting less than 20% down on a conventional loan usually adds PMI to your payment.
Should I save for a bigger down payment or buy sooner?
A bigger down payment lowers your loan, your payment and possibly your mortgage insurance, but it takes longer. Compare the extra months of rent with the monthly savings from a smaller loan. Our rent vs buy calculator can help.
Does interest on savings make a big difference?
It helps a little over short periods. In our example, earning 4% a year instead of 0% gets you to the goal two months sooner. The amount you add each month matters far more.
Can I use gift money for a down payment?
Most loan programs accept documented gifts from family for some or all of the down payment, with rules on who can give and how the money is shown. Ask your lender for its gift letter requirements before the money moves.
What if the calculator says Not reached?
It means your savings never reach the goal within 100 years at the amounts entered, usually because the monthly amount is zero. Add a monthly amount, lower the price or look into down payment assistance.
Can down payment assistance shorten the wait?
Yes. State and local housing finance agencies offer grants and second loans that can cover part of the down payment or closing costs. Subtract any expected help from your goal by raising the amount already saved.
Sources
Read the guides
Related calculators
- Home affordability Turn your income, monthly debts and savings into a maximum home price, using the same debt-to-income test a mortgage lender uses.
- Debt-to-income (DTI) Find the two ratios lenders check first: how much of your gross income goes to housing, and how much goes to all your monthly debts.
- Closing costs Get a planning range for your closing costs and the total cash you will need on closing day, before you have a Loan Estimate in hand.
- Loan-to-value (LTV) Find the ratio lenders use to price your loan, decide on mortgage insurance and set refinance limits: how much you owe compared with what the home is worth.