About the Down Payment Calculator
A down payment calculator tells you how much deposit a target home price requires and how long it will take to save at your current rate. It is the calculation that converts a vague plan to buy into a date.
The formula
Months = (required deposit − already saved) / monthly savingThe required deposit is the target home price multiplied by your chosen deposit percentage. The result is the number of months of saving still needed at your current contribution.
How to use this calculator
- 1Enter your Target Home Price ($). The field starts at
400000, which you can overwrite. - 2Enter your Down Payment (%). The field starts at
20, which you can overwrite. - 3Enter your Already Saved ($). The field starts at
20000, which you can overwrite. - 4Enter your Monthly Savings ($). The field starts at
1500, which you can overwrite. - 5Read the result straight away — it recalculates as you type, so there is no button to press. Use Share to copy a link that reopens the page with your exact numbers filled in.
Worked example
| Input | Value |
|---|---|
| Target Home Price ($) | 400000 |
| Down Payment (%) | 20 |
| Already Saved ($) | 20000 |
| Monthly Savings ($) | 1500 |
Result
Down Payment Goal: $80,000
Remaining to Save: $60,000
Time to Goal: 3y 4m
Those are the values the page loads with, so you can reproduce this result yourself and then change one field at a time to see what drives the outcome.
Understanding your result
Twenty percent is the figure people anchor on, because it avoids private mortgage insurance on a conventional loan. But it is not a requirement. Conventional loans start near 3 percent, FHA at 3.5, and VA and USDA loans at zero for eligible buyers. A smaller deposit means a bigger loan, a higher payment, and insurance premiums until you build equity.
The trade-off is genuinely two-sided, and the honest answer depends on your market. Waiting years to reach 20 percent while prices and rents rise can cost more than the insurance would have. Buying immediately with 3 percent means a larger balance at today's rates and little cushion if values fall. Running both scenarios beats following a rule.
Things worth knowing
- Closing costs of 2 to 5 percent are payable on top of the deposit. Saving for one and forgetting the other is a common and painful mistake.
- Keep deposit savings in cash or short-term instruments. Money you need within two years does not belong in the stock market.
- Check first-time buyer assistance programmes in your state and city. Grants and forgivable second loans are more widely available than most buyers realise.
- Lenders want to see the money seasoned in your account for two to three months, and gifted funds need a documented gift letter.
- Keep a separate emergency fund. Arriving at closing with nothing left is how a minor repair becomes a crisis.
Frequently asked questions
Do I really need 20 percent down?+
No. It is the threshold that avoids private mortgage insurance on conventional loans, not a minimum. Many buyers purchase with 3 to 5 percent and accept the premium until they reach 20 percent equity.
What is the advantage of a larger deposit?+
A smaller loan, a lower monthly payment, no mortgage insurance at 20 percent, often a better interest rate, and a stronger offer in a competitive market. The cost is the liquidity you give up.
Can I use gift money for a deposit?+
Yes, on most loan programmes, provided you document it with a gift letter confirming the funds are not a loan. Lenders will trace the transfer, so avoid cash deposits with no paper trail.
How long does it take to save a deposit?+
That is what this calculator answers — it depends entirely on your target price, deposit percentage, existing savings, and monthly contribution. Nationally, first-time buyers commonly take four to seven years.