Plan your down payment savings goal and timeline
This down payment calculator helps you create a savings plan for your home purchase. By setting a target down payment percentage and entering your current savings and monthly contribution, you can see exactly when you will reach your goal. Saving for a down payment is often the biggest hurdle to homeownership. This calculator shows you not only your target amount but also how different monthly savings amounts and investment returns affect your timeline, giving you a realistic savings roadmap.
The calculator uses the future value of a series formula to determine how many months of saving are needed to reach your target amount.
A 20% down payment eliminates PMI for conventional loans, but many programs allow as little as 3-5% down. FHA loans require only 3.5% down.
Only use savings that do not compromise your emergency fund. Aim to keep 3-6 months of expenses in reserve even after your down payment.
Conventional loans require as little as 3% down, FHA loans require 3.5%, and VA loans may require 0% down. A 20% down payment eliminates PMI for conventional loans.
A larger down payment reduces your loan amount, which lowers monthly payments and total interest. For example, 20% down on a $400,000 home saves approximately $200-$300 per month compared to 5% down.
No, it is recommended to keep 3-6 months of living expenses in an emergency fund separate from your down payment savings. Homeownership comes with unexpected costs like repairs and maintenance.
Consider automating transfers to a dedicated savings account, cutting discretionary spending, taking on side income, or using gifts from family members which are allowed on most loan programs.