Down Payment Savings Goal Calculator
Example: Target home price: 350000 $ · Down payment goal: 20 % · Amount already saved: 15000 $ · Monthly savings: 1200 $ · Savings account APY: 4 %
| Months to reach goal | 42 |
| Down payment goal | $70,000 |
| Amount still needed | $55,000 |
Worked example
A 20% down payment on a $350,000 home is $70,000. If you already have $15,000, you still need $55,000. Saving $1,200 a month in an account earning 4% APY, the balance — helped a little by interest — crosses $70,000 in about 42 months, or three and a half years. Raising the monthly amount to $1,600 would shave roughly a year off that timeline.
Frequently asked questions
Do I really need 20% down?
No. Twenty percent lets you avoid private mortgage insurance, but many conventional loans allow as little as 3 to 5% down, and some government-backed programs go lower. A smaller down payment shortens the savings timeline at the cost of PMI and a larger loan.
Where should I keep my down-payment savings?
Because the money is needed soon, most people keep it somewhere safe and liquid — a high-yield savings account, money-market account, or short-term certificates — rather than the stock market, where a downturn could hit right before you buy.
Should I include closing costs in my goal?
It is wise to. Closing costs typically add another 2 to 5% of the price on top of the down payment. Raise your target percentage, or save a separate buffer, so you are not caught short at the closing table.
Does a higher APY make a big difference?
Over a few years the interest helps but is modest compared with your contributions — the amount you save each month is the dominant lever. Still, using a high-yield account rather than a near-zero one is essentially free money.