A down payment savings calculator answers the specific question first-time buyers need: given my deposit target and my timeline, what do I need to set aside each month? The default is pre-filled with a $60,000 down payment goal over 36 months — adjust it to your own numbers.
This calculator handles the savings side of home buying. It shows the exact monthly contribution, the interest your account earns along the way, and a month-by-month breakdown. It does not model the mortgage — that is a separate calculation for when you are closer to purchase.
Choosing your down payment target
Down payment requirements vary by loan type. A conventional loan can accept as little as 3–5% down, though under 20% typically adds private mortgage insurance (PMI). FHA loans require 3.5% with a credit score of 580+. A 20% down payment eliminates PMI and reduces monthly mortgage payments — which is why many buyers target exactly that amount.
Enter your target home price and multiply by your intended down payment percentage to get your savings goal. If you are saving toward $400,000 at 15%, your goal is $60,000. The calculator above is pre-filled with that example.
Choosing the right savings vehicle
Down payment funds need to be safe, liquid, and growing. A high-yield savings account (HYSA) hits all three: currently paying 4–5% APY with full FDIC insurance and no restriction on when you can access the money. CDs can lock in slightly higher rates if you have a firm purchase timeline and will not need early access.
Most mortgage lenders require that down payment funds have been sitting in your account for 60–90 days (the "seasoning" requirement) before closing. Keep this in mind as your purchase date approaches — moving money around too close to closing can complicate the approval.
What to do if the monthly number is too high
If the required monthly is above what your budget allows, you have two levers: extend the timeline or reduce the target. Extending from 36 to 48 months on a $60,000 goal drops the monthly requirement by about $360 — a significant relief. Reducing your down payment target from 20% to 10% cuts the goal in half, though it changes your mortgage terms.
Enter your actual comfortable monthly saving amount in Mode A to see how long that pace takes to reach $60,000. The difference between the two timelines often clarifies which lever to pull.
Frequently asked questions
How much should I save for a down payment each month?
It depends on your goal amount and timeline. For a $60,000 down payment in 3 years at 4% APY, you need about $1,590/month. In 4 years, about $1,160/month. Enter your specific numbers above for the exact figure.
How long does it take to save a 20% down payment?
It depends on the home price and what you can save monthly. On a $300,000 home (20% = $60,000), saving $1,000/month takes about 57 months; $1,500/month takes about 37 months. Use the calculator above with your target home price.
Can I use a 401(k) or Roth IRA for a down payment?
First-time buyers can withdraw up to $10,000 from a Roth IRA penalty-free for a home purchase. 401(k) withdrawals typically trigger taxes and a 10% penalty unless you qualify for an exception. These are options to discuss with a tax advisor — not the first choice for most buyers.
Should I stop investing while saving for a down payment?
Generally: keep contributing enough to capture any employer 401(k) match (that is free money), but you may choose to pause or reduce above-match investing while in the savings sprint. Run the numbers on both paths — a mortgage calculator (coming soon) can show whether the home purchase creates enough net wealth to justify temporarily slower retirement savings.