How this calculator works
Down payment is the price × your chosen percentage; closing costs are usually 2% to 5% of the price.
Your current savings and monthly deposits grow at your savings rate until you reach the total.
Under 20% down, conventional loans usually add PMI; FHA allows 3.5% down with its own mortgage insurance.
Some buyers qualify for down payment assistance through state housing agencies.
Worked example
$380,000 home, 10% down, 3% closing, $15,000 saved, $1,000 a month
- Cash needed: $38,000 + $11,400 = $49,400.
- At 4% APY, it takes about 2 years 8 months.
- The loan would be $342,000.
Questions people ask
Do I need 20% down?
No. Many buyers put down 3% to 10%. 20% avoids PMI on a conventional loan and lowers the payment.
Can family help with the down payment?
Yes, with a gift letter. Gifts above $19,000 per giver in 2026 require the giver to file a gift tax return, though tax is rarely due.
What are closing costs?
Lender fees, appraisal, title insurance, recording fees and prepaid taxes and insurance.
Where should I keep down payment savings?
Somewhere safe and liquid, such as a high-yield savings account or short CDs.
Last reviewed October 2, 2026