Down Payment CalculatorHow Long to Save for a House
Enter a price, a down payment, what you've saved and what you add each month. You get a calendar date: the month your down payment and closing costs are fully funded. The same savings run against 3.5% FHA, 10%, and 20% down, each with its mortgage insurance priced, so you can see what buying sooner costs. Free, no signup.
Last reviewed: September 2026 · FHA MIP per HUD Mortgagee Letter 2023-05 · PMI cancellation per the Homeowners Protection Act · default rate 6.75% (Freddie Mac PMMS averaged 6.76% on Sep 10, 2026)
④ Mortgage assumptions
Freddie Mac's widely quoted estimate is $30–$70 a month per $100,000 borrowed. Your rate depends on credit score and down payment. FHA loans use HUD's MIP schedule instead.
You'll have your down payment + closing costs by
4–7 years outShow formula ▸
balance(n) = S₀·(1+r)ⁿ + P·((1+r)ⁿ − 1) / r, r = (1 + APY)^(1/12) − 1
S₀ = $20,000 · P = $1,200/mo · APY = 4.0% → r = 0.3274%/mo
Solve balance(n) ≥ $98,900 → n = 57 months
3.5% vs 10% vs 20% down
Savings toward the goal
PMI avoidance
No PMI ✓ Twenty percent down on a conventional loan skips mortgage insurance entirely.
Does APY move your date?
At 4.0% APY you finish in —. With no interest it's —. Interest buys you 9 months and covers $10,759 (10.9%) of the goal.
What-if simulator
Drag a slider to test a change against your plan.
Reverse calculator
To have $98,900 by —, save $3,100/mo ($1,900 more than now).
Savings plan report card
CWorkable, but the plan needs tightening
Scenario A vs B
Lock this plan as Scenario A, then change the price or down payment. The table compares A with your live plan (B).
What closing costs cover
Your goal includes $12,900 of closing costs (3% of price). The CFPB puts typical buyer closing costs at 2–5% of the purchase price.
- Lender fees: origination, underwriting, credit report
- Appraisal and home inspection
- Title search, lender's title insurance, settlement fee
- Recording fees and any transfer taxes
- Prepaids: interest to month-end, first-year homeowners insurance, property-tax escrow deposit
Your lender's Loan Estimate itemizes these three business days after you apply. Reserves ($0) are cash you keep afterward. They aren't paid at closing.
Low-down-payment options on this price
| Loan | Min down | Months to save* | Notes |
|---|---|---|---|
| Conventional 97 | 3% · $12,900 | 5 | HomeReady / Home Possible; PMI until 78% LTV |
| FHA | 3.5% · $15,050 | 7 | 580+ credit; 1.75% upfront MIP financed |
| VA | 0% · $0 | now | Eligible service members and veterans; 2.15% funding fee on first use with under 5% down |
| USDA | 0% · $0 | now | Eligible rural and suburban areas, income limits; 1% upfront + 0.35%/yr fee |
*Includes your closing-cost and reserve settings. VA and USDA rows assume closing costs are paid in cash. State and local down payment assistance adds grants and forgivable second loans on top: Down Payment Resource counted 2,619 homebuyer programs in Q4 2025.
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How Long Does It Take to Save for a House?
Three inputs decide it: the cash you need at closing, the cash you already have, and what you add each month. The interest on the account holding that money is a fourth, smaller lever. Take a $430,000 home, which sits inside the roughly $400,000 to $440,000 range NAR's monthly existing-home medians have covered lately. With 20% down and 3% closing costs, the target is $98,900. Starting from $20,000 and depositing $1,200 a month into a 4.0% APY account, the balance crosses that line in month 57, four years and nine months out.
Under the hood, each month's balance earns one month of interest and then the new deposit lands on top. The calculator solves balance(n) = S₀(1+r)ⁿ + P((1+r)ⁿ − 1)/r for n and rounds up to a whole month. The monthly rate r is (1 + APY)^(1/12) − 1. Dividing APY by 12 would overstate growth, because APY already includes compounding. With no interest at all the math is plain division: the $78,900 still needed divided by $1,200 is 66 months. On this plan, the 4.0% account is worth nine months.
How Much Down Payment for a House Do You Actually Need?
Less than most people assume. Conventional loans accept 3% through Fannie Mae HomeReady and Freddie Mac Home Possible, FHA loans take 3.5% with a credit score of 580 or higher, and VA and USDA loans can go to zero. Twenty percent is not a rule. It's the line where a conventional lender stops charging private mortgage insurance, and it's why the comparison panel treats 20% as the benchmark rather than the requirement.
Actual buyers sit well below it. NAR's 2025 Profile of Home Buyers and Sellers found a median down payment of 10% for first-time buyers and 23% for repeat buyers, whose previous home usually funds the next one. First-time buyers made up just 21% of purchases, the lowest share NAR has recorded, and their median age reached 40. For them the real decision is between the FHA minimum and roughly 10% down, and how much that shortcut costs compared with waiting.
Down Payment for a $300K House vs a $400K House
These two price points cover a lot of first-time searches, so here's a quick down payment percentage calculator for both. Closing costs are separate, and at the calculator's 3% default they add $9,000 and $12,000.
| Down payment | $300,000 house | $400,000 house |
|---|---|---|
| 3% (conventional minimum) | $9,000 | $12,000 |
| 3.5% (FHA minimum) | $10,500 | $14,000 |
| 5% | $15,000 | $20,000 |
| 10% | $30,000 | $40,000 |
| 20% (no PMI) | $60,000 | $80,000 |
Timing matters as much as the size. For a $300,000 starter home at 20% down, the full target including closing is $69,000. From $15,000 saved and $800 a month at 4.0% APY, that takes 58 months. The same savings reach the FHA target of $19,500 in 6 months, and 10% down ($39,000) in 28.
The down payment on a $400K house shrinks in time when the saver is aggressive. With $40,000 already set aside and $3,000 going in every month, 20% down plus closing ($92,000) is 17 months away, and 10% down ($52,000) is only 4 months away. At that pace the extra 13 months buy a loan with no PMI at all.
How to Avoid PMI, and Why FHA Mortgage Insurance Is Different
On a conventional loan there are two routes. Put 20% down and PMI never starts, or accept it and let it end. The Homeowners Protection Act gives you the right to request cancellation once your balance is scheduled to reach 80% of the original value, and requires your servicer to drop it automatically at 78%. Take a $650,000 condo bought with 10% down at 6.75%: PMI at 0.55% is $268 a month, removable on request after 98 months and gone automatically after 112. The PMI avoidance calculator panel above prices the alternative, which here is $65,000 more saved and 28 more months of waiting.
What does PMI cost? Freddie Mac's widely quoted estimate is $30 to $70 a month for every $100,000 borrowed. Broader industry quotes span roughly 0.3% to 1.5% of the loan per year, depending mostly on credit score and down payment. The tool defaults to 0.55%, about $46 per $100,000, and lets you change it in the mortgage assumptions.
FHA works differently, and the difference is what changes the low-down-payment math most. FHA charges 1.75% of the loan upfront, usually financed, plus an annual premium of 0.55% when the loan-to-value is above 95% (0.50% at or below, for loans up to $726,200). With less than 10% down that annual premium lasts for the life of the loan, and with 10% or more it runs 11 years. A $300,000 FHA purchase at 3.5% down carries $5,066 of upfront MIP and about $134 a month from day one, with no automatic end date. The usual exit is refinancing into a conventional loan once you reach 20% equity.
The 20 Percent Down Payment Calculator Math: What Buying Sooner Costs
Waiting for 20% has a price in months, and buying early has a price in insurance. The comparison puts both on one line with a number it calls insurance cost per month sooner: the extra mortgage insurance a smaller down payment carries in the first five years of the loan, including any upfront MIP, divided by how many months earlier you get the keys.
On the default $430,000 plan, FHA 3.5% arrives 50 months before 20% down and costs $18,543 in mortgage insurance over five years, about $371 for each month you move in sooner. Ten percent down arrives 29 months sooner for $10,643 of PMI, about $367 a month. If you pay more than that in rent while you wait, the earlier date deserves a serious look. This figure isolates insurance only. A bigger loan also carries more interest, so pair it with the rent vs buy calculator before you decide.
Should Closing Costs Be Part of Your Savings Goal?
They should, because they're cash at the table just like the down payment. The CFPB puts typical buyer closing costs at 2% to 5% of the purchase price. They cover lender fees, the appraisal, title insurance and settlement, recording fees and any transfer taxes, plus prepaid interest, homeowners insurance, and property-tax escrow. On a $430,000 home, the 3% default is $12,900.
Leaving that out moves the finish line in the wrong direction. The default plan funds a bare 20% down payment in month 49 but the full amount in month 57, so a saving for a house calculator that stops at the down payment hands you a date eight months too early. Your lender's Loan Estimate, due within three business days of applying, replaces the estimate with real numbers. The reserves slider covers a separate risk: closing with an empty account. One month of reserves on the default loan is $2,231, a full principal-and-interest payment.
Does a High-Yield Savings Account Speed Up Your Timeline?
It depends on where the money sits now. The FDIC national average savings rate was 0.38% in August 2026, while the top online high-yield accounts paid roughly 3.0% to 4.1% APY in September 2026. That spread is large enough to move a multi-year plan. On the default $98,900 goal, 4.0% APY finishes in month 57 and a zero-interest account in month 66, so the right account saves nine months of saving.
The effect scales with time and balance. The slow-and-steady preset ($350,000 at 5% down, $500 a month) reaches its $28,000 target in 40 months at the 0.38% national average, identical to earning nothing. Move it to 4.0% and it lands in 36 months. For the aggressive saver, 17 months out, the same switch moves the date by one month. The APY ladder in the tool shows your own plan at no interest, the national average, 4.0%, and your current rate side by side.
Down Payment Assistance and First-Time Home Buyer Down Payment Options
Down Payment Resource counted 2,619 homebuyer assistance programs nationwide in Q4 2025. Most come from state housing finance agencies, counties, and cities, as grants, forgivable second mortgages, or deferred-payment loans. Many target first-time buyers, which programs commonly define as anyone who hasn't owned a home in the past three years. Assistance stacks on top of the loan, so a grant can cover part or all of a first-time home buyer down payment on an FHA loan.
Tap the 3.5% FHA chip and the tool works as an FHA down payment calculator, with the 1.75% upfront MIP financed into the loan and the lifetime annual premium applied. VA loans need no down payment for eligible service members and veterans, with a 2.15% funding fee on first use under 5% down. USDA guaranteed loans need none in eligible areas, with a 1% upfront fee and 0.35% a year. For those two, the only cash left to save is closing costs, which the assistance table in the tool times out for you.
Frequently Asked Questions
How long does it take to save for a down payment?
It depends on the cash target, your starting balance, your monthly deposit, and the APY on the account. For a $430,000 home with 20% down plus 3% closing costs, the target is $98,900. Starting from $20,000 and adding $1,200 a month at 4.0% APY, you get there in 57 months (4 years 9 months). With no interest it takes 66 months. Deciding how much to save for a down payment therefore starts with the full cash-to-close number, not the down payment alone.
Do I need 20% down to buy a house?
No. Twenty percent is the point where a conventional loan stops charging private mortgage insurance, not a lending requirement. NAR's 2025 Profile of Home Buyers and Sellers put the median first-time buyer down payment at 10% and the median repeat-buyer down payment at 23%. On a $430,000 home, 10% down plus closing is $55,900 and 20% down plus closing is $98,900. At $1,200 a month that difference is the gap between month 28 and month 57.
How much is the down payment on a $300,000 or $400,000 house?
On a $300,000 house: $9,000 at 3%, $10,500 at the 3.5% FHA minimum, $30,000 at 10%, and $60,000 at 20%. On a $400,000 house: $12,000, $14,000, $40,000, and $80,000. Add closing costs on top, which at 3% are another $9,000 and $12,000.
What is the minimum down payment for FHA, conventional, VA, and USDA loans?
Conventional loans go as low as 3% through Fannie Mae HomeReady and Freddie Mac Home Possible. FHA loans require 3.5% with a credit score of 580 or higher, plus 1.75% upfront mortgage insurance that is usually financed. VA loans need no down payment but charge a funding fee of 2.15% on first use with less than 5% down. USDA guaranteed loans need no down payment and charge a 1% upfront fee plus 0.35% a year, in eligible areas and under income limits.
How do I avoid PMI?
Put 20% down on a conventional loan, or let it cancel. Under the Homeowners Protection Act you can ask your servicer to remove PMI once the balance is scheduled to reach 80% of the original value, and it must drop automatically at 78%. On a $650,000 condo with 10% down, a 6.75% rate and PMI at 0.55%, that is $268 a month, removable on request after 98 months and cancelled automatically after 112. Reaching 20% first would take $65,000 more and 28 extra months of saving.
Should I put 3.5%, 10%, or 20% down?
Compare what each month of buying sooner costs in mortgage insurance. On the default $430,000 plan, FHA 3.5% arrives 50 months before 20% down and costs $18,543 in mortgage insurance over the first five years, including upfront MIP, which works out to about $371 per month sooner. Ten percent down arrives 29 months sooner for $10,643 of PMI, about $367 per month. If your rent while waiting is higher than that, buying sooner can make sense. A bigger loan also means more interest, so run the rent-vs-buy numbers too.
Does a high-yield savings account help me save for a house faster?
Yes, and more the longer and larger the plan. The FDIC national average savings rate was 0.38% in August 2026, while top online high-yield accounts paid roughly 3.0% to 4.1% APY in September 2026. On the default $98,900 goal, 4.0% APY finishes in 57 months versus 66 with no interest, nine months sooner. On a short 17-month plan the same rate moves the date by only one month.
Should I include closing costs in my savings goal?
Yes. The CFPB puts typical buyer closing costs at 2% to 5% of the purchase price. On a $430,000 home, 3% is $12,900. Saving $1,200 a month, leaving closing costs out would show a finish date of month 49 instead of month 57, eight months too early. Your Loan Estimate itemizes the real figures within three business days of applying.
What down payment assistance programs exist for first-time buyers?
Down Payment Resource counted 2,619 homebuyer assistance programs nationwide in Q4 2025. Most are run by state housing finance agencies, counties, and cities, and they take the form of grants, forgivable second mortgages, and deferred-payment loans. Many define a first-time buyer as someone who has not owned a home in the past three years. They stack with the loan itself, so an FHA borrower might cover some or all of the 3.5% down with an assistance grant.