How Much Do You Need to Save Each Month for Your Home?
Enter your target home price, down payment percentage, current savings, and timeline. Get your exact monthly savings target.
The typical US first-time buyer takes ~7 years to save their down payment. Here's how to speed that up.
20%
down payment avoids PMI — saving $100–$200/month on your mortgage
3–5%
minimum down payment required by many conventional loans
$25K
median down payment on US home purchases in 2024
How to save a down payment faster
Understanding PMI
Private Mortgage Insurance is required on most conventional loans with less than 20% down. It typically costs 0.5–1.5% of the loan per year — about $100–$300/month on a $300K loan. Once you hit 20% equity, you can request PMI removal.
The right savings vehicle
For a down payment 2–5+ years away, a High-Yield Savings Account earning 4–5% APY is usually the right choice. For 5+ years out, some buyers use conservative bond funds. Never put short-term down payment savings in stocks.
First-time buyer programs
Many states offer down payment assistance programs, grants, or forgivable loans for first-time buyers. The FHA, USDA, and VA loan programs offer low or zero down payment options for qualifying buyers. Research your state's HFA.
How the Down Payment Calculator Works
The calculator finds your target down payment (home price × down payment %) then subtracts your current savings to get the remaining gap. That gap is divided by your target number of months to give your required monthly savings amount.
Note: this assumes you're saving in a standard account without investment returns on the savings. If you're earning interest in a HYSA, your real monthly requirement will be slightly lower.