How to use this calculator
- Enter the Home price and the Down payment percentage you are aiming for.
- Set Closing costs as a percentage of the price.
- Add Already saved, what You can save per month and the Interest on savings.
- Read Cash needed, Time to reach it and the year-by-year savings balance.
What the calculator does
The cash you need at closing is the down payment plus closing costs. The calculator multiplies the price by both percentages, then simulates your savings month by month: each month the balance earns interest and your monthly deposit is added, until the target is reached.
Cash needed = Price × (Down % + Closing %) ÷ 100- Price = purchase price of the home
- Down % = share of the price paid in cash
- Closing % = lender, title and other closing costs as a share of the price
- Savings grow monthly: new balance = old balance × (1 + monthly rate) + deposit
The loan amount shown is the price minus the down payment, which is what you would borrow.
Example: a $350,000 home with 20% down
With 20% down and 3% closing costs on $350,000, you need $80,500: $70,000 for the down payment and $10,500 for closing. The loan would be $280,000. Starting from $15,000 saved, adding $1,000 a month at 4% interest, you reach the target in 57 months, with $65,500 still to save at the start.
Saving $1,500 a month instead shortens that to 40 months. Lowering the down payment to 10% cuts the cash needed to $45,500 and the wait to 28 months, but raises the loan to $315,000.
How to use the result
A bigger down payment lowers your loan and monthly payment, and at many lenders removes mortgage insurance at 20%. A smaller one gets you into a home sooner but costs more each month and over time. Run both on the mortgage calculator and compare.
Do not spend every dollar on the purchase. Keep an emergency reserve for repairs and moving, and size the target price using the home affordability calculator.
Ways to get there faster
- Raise the monthly amount; this has a larger effect than a slightly higher interest rate.
- Automate the transfer on payday so the money is not spent first.
- Keep the savings in an insured account or short-term product, not in volatile investments you may need within a few years.
- Ask about down payment assistance programs in your area.
- Plan a savings schedule with the savings goal calculator.
Assumptions and limits
Closing costs are modeled as one percentage of the price and savings earn a flat rate with no tax. Real closing costs vary with the lender, location and loan type, and the calculator does not include mortgage insurance, moving costs, inspections or prepaid taxes.
If the target cannot be reached within 50 years of saving, no time is shown. Ask a lender for a Loan Estimate for exact cash-to-close figures.
Frequently asked questions
How much should I put down on a house?
There is no single right number. Twenty percent avoids mortgage insurance on many loans, but lower down payments are common. Choose what keeps your payment manageable and leaves you a cash reserve.
Are closing costs part of the down payment?
No, they are paid separately at closing. This calculator adds them so you see total cash needed.
Does a larger down payment lower my interest rate?
It can, because the lender takes less risk. The effect depends on the lender, your credit and the loan program.
Where should I keep down payment savings?
Somewhere stable and accessible, such as an insured savings account, because you need the money on a known date.