Save for a Down Payment Calculator
Calculate the down payment you need on a home and how long it will take to save it from your current balance and monthly contributions.
How to use this tool
- Enter the price of the home you are targeting.
- Set the down payment percent (20% is common to avoid PMI).
- Enter what you have already saved toward the down payment.
- Enter how much you will save each month.
- Read the down payment needed and the time to reach it.
Saving for a home? See the down payment you need and how long it will take to get there. Enter the home price, your down payment percentage, what you've saved and your monthly amount.
Formula
Down payment needed = Home price × (Down payment percent ÷ 100).
Still to save = Down payment needed − Already saved (never below $0).
Months to save = Still to save ÷ Monthly savings. Years = Months ÷ 12.
How it works
The down payment is the upfront cash you put toward a home purchase, with the rest financed by a mortgage. This calculator first sizes that payment as a percentage of the home price — 20% is a common target because it typically removes private mortgage insurance (PMI), though many loan programs allow far less. It then subtracts what you have already saved and divides the remaining amount by your monthly savings to project a timeline in months and years.
This is a straight-line savings plan with no assumed investment return, which keeps the estimate conservative and easy to verify. If you keep the money in a high-yield savings account or short-term investment, interest will let you reach the goal a little sooner. Keep in mind that a down payment is not the only cash needed to buy: closing costs, moving expenses and a maintenance reserve typically add several percent of the price on top.
The model assumes a fixed home price and a steady monthly contribution. Rising home prices can move the target while you save, so revisit the figures periodically and consider aiming slightly higher. Reviewed by the AbraCalc Budgeting Desk for arithmetic correctness; for mortgage-specific guidance consult a lender or housing counselor.
Worked example
$300,000 home, 20% down, nothing saved, $1,000/month
- Down payment needed = $300,000 × 20% = $60,000.
- Still to save = $60,000 − $0 = $60,000.
- Months to save = $60,000 ÷ $1,000 = 60.
- Years = 60 ÷ 12 = 5.
Down payment needed: $60,000 — $60,000 still to save, about 60 months (5 years) at $1,000/month.
20% down payment by home price
| Home price | 20% down | 10% down | Months at $1,000/mo (20% down) |
|---|---|---|---|
| $200,000 | $40,000 | $20,000 | 40 |
| $300,000 | $60,000 | $30,000 | 60 |
| $400,000 | $80,000 | $40,000 | 80 |
| $500,000 | $100,000 | $50,000 | 100 |
Key terms
- Down payment
- The upfront portion of a home's price you pay in cash, with the remainder covered by a mortgage.
- Private mortgage insurance (PMI)
- Insurance lenders often require when the down payment is below 20%, adding to the monthly cost until enough equity is built.
- Loan-to-value (LTV)
- The mortgage amount as a percentage of the home's value; a larger down payment means a lower LTV.
- Closing costs
- Fees due at purchase — appraisal, title, lender and other charges — usually a few percent of the price, on top of the down payment.
Frequently asked questions
- How much down payment do I need?
- It depends on the loan, but 20% of the price is a common target because it usually avoids private mortgage insurance. Many programs allow 3%–10%, which lowers the upfront cash but may add PMI.
- How long will it take to save?
- Subtract what you've saved from the down payment needed, then divide by your monthly savings. The calculator shows this in months and years assuming steady contributions.
- Does this include closing costs?
- No. The figure is the down payment only. Budget separately for closing costs, moving expenses and a maintenance reserve, which together often add several percent of the price.
- Should I assume investment growth?
- This uses a conservative straight-line plan with no return. Keeping the money in a high-yield savings account earns some interest, which would let you reach the goal slightly sooner.