Down Payment Savings Goal

How much do you need to save each month?

Enter how much cash you’ll need to buy, when you want to buy, and what you’ve saved so far. We’ll work out the monthly amount that gets you there, including the interest your savings earn along the way.

Your goal is more than the down payment
Buying takes cash for the down payment plus , the fees to finalize the purchase and the loan. Count both in your goal so you’re not short on closing day.
Your savings earn interest
Money in a high-yield savings account grows a little each month. Accounts quote this as . What you’ve already saved keeps growing until you buy.
We solve for the monthly amount
We estimate what your current savings will grow to, subtract that from your goal, and find the monthly deposit that covers the rest by your purchase date.

For a first goal, take your down payment and add 2% to 5% of the price for closing costs. See Down payment strategies for how much to put down and where the money can come from.

Savings goal

Years until purchase

Already saved

Interest rate on savings

% APY

Save this much each month

$1,655

Save $1,655/month for 3 years at 4% APY (plus your existing $15,000) and you’ll reach $80,000.

Save monthly

$1,655

for 36 months

Current savings grow to

$16,873

$15,000 earning 4% a year

You deposit

$59,583

new money you put in

Interest earned

$5,417

at 4% APY

Final balance

$80,000

after 3 years

What this means

Of your $80,000 goal, $15,000 is already saved and should grow to $16,873 by your purchase date. You’d deposit $59,583 more over 36 months, and interest adds about $5,417 on top. Setting up an automatic transfer on payday makes the monthly amount easier to stick to.

Savings rates change over time, so treat the interest as an estimate. Interest is usually taxable as income, which this doesn’t account for.

What would lower your monthly amount

Buy one year later−$451/mo

Start with $5,000 more saved−$147/mo

Aim for a $10,000 smaller goal−$262/mo

How your savings grow

Earning 4% APY Same deposits earning no interest

A high-yield savings account (Marcus, Ally, Wealthfront cash) is the standard place for down-payment money; yields are variable, so check today’s rate. CDs (certificates of deposit) lock the rate in but tie up the money until they mature. Treasury bills (TreasuryDirect) pay similar yields and are exempt from state income tax; set them to reinvest automatically or roll them over yourself. Use stocks only if your timeline is 5+ years. Otherwise you risk having to sell in a down market right when you need the cash.

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

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Terms used on this page

Short definitions of the terms this calculator uses.

Down payment: The part of the home price you pay in cash upfront. The rest is your loan. Many loans allow 3% to 5% down; 20% avoids mortgage insurance.
Closing costs: Fees to finalize the purchase and the loan, such as lender charges, appraisal, and title insurance. Often 2% to 5% of the price, paid in cash on top of the down payment. More
APY (annual percentage yield): How much a savings account or CD pays in a year, including interest on your interest. $10,000 at 4% APY grows to about $10,400 in a year.
Compound interest: Earning interest on past interest as well as on what you deposited. The longer money sits, the bigger this effect.
High-yield savings account: A savings account, usually at an online bank, that pays far more than a typical big-bank account while keeping your money available and insured.
CD (certificate of deposit): A bank deposit that locks in a rate for a set time, such as 6 or 12 months. Taking money out early usually costs a penalty.
Treasury bills: Short-term loans to the US government, sold through TreasuryDirect or a brokerage. Their interest is exempt from state income tax.
Cash reserves: Money left in your accounts after closing. Lenders often like to see some, and it covers repairs and surprises once you own the home.

Keep learning

Next steps

Affordability calculator: find the price your income supports
Closing cost estimator: size the closing-cost part of your goal
Gift funds: using money from family toward your down payment
PMI calculator: what a smaller down payment costs each month