How it works
Your savings target is the down payment percentage of the home price plus an allowance for closing costs, which typically run 2–5% of the price and are usually paid in cash.
The timeline adds your monthly deposit and monthly interest on the balance until it reaches the target. The last row works the other way: how much you would need to save each month to hit the goal in your chosen time frame.
You do not always need 20% down. Conventional loans allow 3–5% and FHA 3.5%, though less than 20% usually means paying mortgage insurance.
Formula
Monthly needed = (goal − saved × (1 + r)^n) × r ÷ ((1 + r)^n − 1)
Questions people ask
Do I need 20% down to buy a house?
No. Many conventional loans allow 3–5% down and FHA loans 3.5%. Putting 20% down avoids PMI on a conventional loan and lowers the monthly payment.
Where should I keep a down payment fund?
Money needed within a few years is usually kept somewhere stable: a high-yield savings account, money market fund, CDs or Treasury bills, rather than stocks.
Are closing costs separate from the down payment?
Yes. Closing costs cover lender fees, title, appraisal and prepaid items and are owed at closing on top of the down payment, unless the seller or lender covers some of them.