Down Payment Savings Calculator
Calculate how long it will take to save for a down payment. See monthly savings needed, interest earned, and mortgage estimate.
How This Calculator Works
Calculation methodology and assumptions
Calculates time to reach down payment goal with monthly savings and compound interest from a high-yield savings account. PMI (Private Mortgage Insurance) is typically required for down payments under 20%, adding 0.5-1% of loan amount annually. Mortgage estimate uses current average rate of 7% over 30 years.
Frequently Asked Questions
How much should I save for a down payment?
20% is ideal to avoid PMI, but FHA loans require only 3.5% and conventional loans can be as low as 3%. On a $350,000 home, 20% = $70,000, 10% = $35,000, 3.5% = $12,250.
What is PMI?
Private Mortgage Insurance (PMI) protects the lender if you default. It's required for conventional loans with less than 20% down. PMI typically costs 0.5-1% of the loan amount per year and is removed once you reach 20% equity.