CalcLedger
Homebuying

Down Payment Savings Calculator

Find out how much cash you need to buy, how long it will take to save it, and what to save each month to reach your date.

Your goal
$
%
% of loan
Your savings
$
$
%
years
Your plan
Time to reach your goal
$0
Monthly savings to hit your target
$0
Down payment—
Estimated closing costs—
Total cash goal—
Still needed—

How this is calculated
  • Cash goal = down payment + closing costs (percentage of the loan).
  • Each month: savings × (1 + APY ÷ 12) + your deposit, counted until the goal is reached.
  • Monthly amount to hit your date: (goal − savings × (1+i)n) × i ÷ ((1+i)n − 1).

Full methods and assumptions: how we calculate.

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How much cash you need

Your cash goal is the down payment plus closing costs, which often run about 2% to 6% of the loan. Lenders may also want to see reserves after closing, so a cushion helps. See what closing costs include.

Putting less than 20% down on a conventional loan usually means paying PMI, and FHA loans allow 3.5% down with their own mortgage insurance. A smaller down payment gets you in sooner but raises the monthly payment; see FHA vs. conventional.

Common questions

How much should I put down?

There is no single right answer. 20% avoids PMI on a conventional loan, while 3% to 5% gets you in sooner. Compare the monthly payments in the mortgage calculator.

Where should I keep a down payment fund?

Money you will need within a few years is usually kept somewhere safe and easy to access, such as a high-yield savings account. Interest rates vary.

Do closing costs have to be paid in cash?

Often, but not always. Sellers or lenders sometimes cover part of them, and some programs help first-time buyers.

Related

Homebuying

Home Affordability Calculator

The price your income supports.
Homebuying

Mortgage Calculator

Monthly payment with taxes and insurance.
Guide

What is PMI?

What it costs and how to drop it.