Down Payment Savings Goal Calculator
Plan your path to a down payment. Enter your target amount, current savings, time horizon, and expected savings rate to see exactly how much to set aside each month.
Your Down Payment Goal
e.g. 20% of a $200,000 home = $40,000
High-yield savings or money market — 0% if cash only
Save Each Month
$900
for 36 months to reach $40,000
Starting Balance
$5,000
Your Contributions
$32,400
$900 × 36 months
Interest Earned
$2,600
Projected Balance at Goal Date
$40,000
Compounded monthly at 4% APY. Adjust the inputs above to fit your timeline and savings rate.
How a Down Payment Savings Plan Works
A down payment goal is just a future value problem with three moving parts: how much you already have, how much you contribute each month, and how much interest your savings earn along the way. The calculator above solves for the monthly contribution — the one number most people can actually control week to week.
The math uses the standard future-value-of-an-annuity formula: your current balance grows at the chosen savings rate, and each monthly contribution earns interest from the month it's deposited. With today's high-yield savings accounts paying 4–5% APY, the compounding can shave a meaningful chunk off your monthly contribution, especially on longer timelines.
The biggest mistake first-time buyers make is forgetting that a down payment isn't the only cash needed at closing. Plan to also have 2–5% of the purchase price for closing costs (use the closing-costs calculator), plus 1–2% for moving and immediate repairs. A common rule of thumb: target your “down payment goal” at the down payment plus closing costs.
Setting a Realistic Target
Start by working backwards from the home price you can afford. On a $300,000 home, 5% down is $15,000, 10% is $30,000, and 20% is $60,000. Add roughly 3% ($9,000) for closing costs. That gives you the real number to save toward.
If the required monthly contribution feels impossible, you have three levers: extend the timeline, lower the target (smaller home or smaller percentage down), or raise the savings rate by moving funds into a high-yield account or short-term CDs.
Frequently Asked Questions
How much down payment do I actually need?
Conventional loans typically require 3% to 20% down. A 20% down payment lets you avoid private mortgage insurance (PMI). FHA loans go as low as 3.5%, and VA and USDA loans can require 0% down for qualifying buyers. Most first-time buyers put down between 6% and 13%.
Where should I keep my down payment savings?
Money you plan to use within 1–3 years belongs in a high-yield savings account, money market account, or short-term CDs — not the stock market. Look for FDIC-insured accounts with rates near the Fed Funds rate. Avoid touching it for any non-housing expense once it's earmarked.
Can I include gift money in my down payment?
Yes. Most loan programs allow gift funds from family, with documentation (a signed gift letter and proof the money came from the giver's account). Lenders will want to see the funds 'seasoned' for at least 60 days in your account before closing.
How does the savings rate change my monthly contribution?
Higher savings rates compound the money you've already put aside, which lowers the monthly contribution needed. On a $40,000 goal in 3 years starting from $5,000, jumping from 0% to 5% APY can reduce the required monthly contribution by about $50 — small over a short horizon but meaningful on longer timelines.
Should I save for a 20% down payment or buy sooner with less down?
It depends on the local market and your timeline. Buying sooner with less down means paying PMI and potentially a higher loan-to-value rate, but you start building equity and stop paying rent. Saving longer for 20% saves on PMI and total interest but exposes you to rising prices and rates. Run both scenarios with the affordability and PMI calculators.
Ready to See What You Can Afford?
Once you know your down payment number, run the full mortgage payment calculator to see what monthly housing cost you're working toward.
Open the Mortgage Calculator