Down Payment Savings Calculator
Plan how much to save each month to reach your down payment goal. Enter your target home price, down payment percentage, current savings, and timeline to get a clear monthly savings plan.
How Down Payment Savings Work
A down payment is the upfront cash you pay when purchasing a home, typically 3% to 20% of the home price. The more you put down, the lower your mortgage amount, monthly payments, and total interest paid. A 20% down payment eliminates private mortgage insurance, saving you hundreds per month. This calculator helps you determine exactly how much to save each month to hit your target, factoring in any existing savings and the interest your savings earn while you build toward your goal.
How Much Down Payment Do You Need?
Conventional loans require as little as 3% down for first-time buyers. FHA loans need 3.5% minimum. VA and USDA loans may require zero down. However, putting less than 20% down means paying PMI, which costs 0.5-1% of the loan amount annually. For a $400,000 home, 20% down is $80,000 but saves you $167-333 per month in PMI. Consider your timeline and financial situation to decide between a lower down payment now versus saving longer for 20% to minimize long-term costs.
Tips to Save for a Down Payment Faster
Automate monthly transfers to a dedicated high-yield savings account earning 4-5% APY. Cut discretionary spending and redirect savings. Consider temporary lifestyle changes like downsizing your rental or reducing subscriptions. Pick up side income through freelancing or selling unused items. Ask family about gift funds, which many loan programs allow. Look into down payment assistance programs in your state or city. Some employers offer housing assistance programs. Track your progress monthly and celebrate milestones to stay motivated on your savings journey.