How to use this calculator
- Enter or choose home price.
- Enter or choose down payment.
- Enter or choose closing costs.
- Enter or choose already saved.
- Enter or choose monthly saving.
- The total cash needed updates as you type. Use Copy result or Share to keep it.
Method
Target = Price × (Down% + Closing%); months n = smallest whole number with S(1 + i)^n + M((1 + i)^n − 1) ÷ i ≥ Target
- S
- amount already saved
- M
- monthly saving
- i
- annual return ÷ 12 ÷ 100 (with no return, n = (Target − S) ÷ M)
Worked example
- Down payment = 20% × 400,000 = $80,000; closing costs = 3% × 400,000 = $12,000; total $92,000.
- Still needed = 92,000 − 30,000 = $62,000.
- With $1,500 a month at 4% a year, n = ln((92,000 × 0.003333 + 1,500) ÷ (30,000 × 0.003333 + 1,500)) ÷ ln(1.003333) = 36.5, so 37 months.
You need $92,000 in cash, and saving $1,500 a month gets you there in about 37 months.
What the result means
A smaller down payment shortens the wait but raises the loan, the monthly payment and, in many markets, adds mortgage insurance. Try a few percentages to see the trade-off.
Assumptions and limits
- Savings earn the return you enter, compounded monthly, and deposits are made at the end of each month.
- The home price stays the same while you save.
- Minimum down payments and closing-cost levels depend on the country, loan type and lender; enter your own figures.
- Moving costs and cash reserves lenders may require are not included.
Questions
Do I need 20% down?
Not always. Many loans allow less, but a smaller down payment often means paying mortgage insurance or a higher rate. Check the minimum with your lender.
What are closing costs?
Fees paid when you complete the purchase, such as lender fees, legal or title costs and taxes on the transfer. Ask for an estimate early.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.