🔢 Calculator
Down Payment Savings Calculator
Enter your target home price, desired down payment percentage, current savings, and how much you can save monthly to see when you'll reach your down payment goal.
Strategies to Save Faster
The biggest lever is increasing your monthly savings. Move to a cheaper rental temporarily. Automate transfers on payday so you never see the money. Cut subscription spending. Consider a side income stream dedicated entirely to the down payment fund. Some buyers also use employer match 401k (free money) while directing other savings to the house fund. One often-missed strategy: many states offer down payment assistance programs for first-time buyers — check your state's housing finance agency before assuming you need to save the full amount yourself.
Frequently Asked Questions
How much should I save for a down payment?
20% is the gold standard because it eliminates PMI (private mortgage insurance, typically $100-300/month). However, many buyers put down less: FHA requires just 3.5%, and conventional loans allow 3-5% down for first-time buyers. The trade-off is higher monthly payments and PMI until you reach 20% equity.
Where should I keep my down payment savings?
A high-yield savings account (HYSA) is the best choice. You need liquidity (accessible within 1-2 days) and zero risk of loss. Don't invest down payment money in stocks — a market crash right before you're ready to buy could set you back years. Current HYSA rates are 4-5% APY.
Should I buy with less than 20% down?
It depends. If rents are rising fast and home prices are appreciating, buying sooner with a smaller down payment can make sense even with PMI. Run the numbers: PMI of $200/month on a home appreciating $1,500/month means waiting costs you $1,300/month in lost equity. But if the market is flat or declining, saving 20% is smarter.
