How the down payment savings calculator works
Enter your savings goal, what you've already saved, your monthly deposit, and the interest rate on your savings account. The calculator compounds your money month by month until the goal is reached.
It shows your target date, how much you'll deposit in total, and how much interest does the heavy lifting for you — so you can see what a bigger monthly deposit buys you in time.
Worked example: $40,000 in 48 months
Target a $40,000 down payment with $8,000 already saved, adding $600 a month to an account earning 4% APY. You reach the goal in 48 months — four years — with $3,761 of that total earned as interest.
Nearly a tenth of the goal came from interest, not deposits. That's why parking the money in a high-yield account beats stuffing it under the mattress.
What to watch out for
Keep down payment savings separate from your emergency fund — raiding one for the other leaves you exposed. And use a high-yield savings account, not investments; the stock market can dip right when you're ready to buy.
Remember closing costs sit on top of the down payment — budget an extra 2% to 5% of the price. Figures here are estimates for planning, not financial advice.
Frequently asked questions
How much should I save for a down payment?
Twenty percent avoids private mortgage insurance, but many buyers succeed with 3% to 10% down. Save what your loan program requires plus closing costs — then weigh PMI costs against waiting longer while prices and rents rise.
Where should I keep my down payment savings?
A high-yield savings account or money market account — safe, liquid, and earning 4% or more. Avoid stocks or crypto for this money; a market dip just before you buy could erase months of progress.
Can I buy a house with no down payment?
Some loans — VA and USDA — allow zero down for eligible buyers. But you'll still need closing costs and reserves, and 100% financing means higher monthly payments and slower equity growth from day one.
Should I pause investing to save faster?
If buying is one to three years away, shifting extra cash to your down payment fund usually makes sense — the timeline is too short for market risk. Keep retirement contributions going at least to any employer match; that's free money you shouldn't skip.