How long until you can buy — and what moves the date closer
—
You Reach the Goal
$—
Goal at That Date
$—
Interest Earned On the Way
If you save…
Goal reached in
Date
Your savings balance Down payment goal (grows with home prices)
Period
Saved
Goal (growing)
% of goal
The goal grows with the home-price appreciation rate you set above, so it's a moving target rather than a fixed number.
Saving for a house has a cruel property that saving for anything else doesn't: the target moves. While your balance compounds at savings-account rates, the home price it's chasing compounds too — historically at a similar or higher rate. This calculator faces that honestly: it grows your goal with home-price appreciation while growing your savings with yield, and tells you the month the two lines actually cross.
How Much Do You Actually Need?
Goal
On a $380,000 home
What it gets you
3% down (conventional min)
$11,400 (+ ~$11,400 closing)
In the door; PMI applies
3.5% (FHA)
$13,300 (+ closing)
Easier credit approval; MIP for the loan's life
10%
$38,000 (+ closing)
Lower PMI, better rates
20%
$76,000 (+ closing)
No PMI, strongest offers
Two persistent myths die here. First: you don't need 20% — the median first-time buyer puts down about 8–9%. Second: the down payment isn't the whole cash need — closing costs add 2–5%, which is why the calculator includes them by default.
The Moving-Target Problem, Quantified
Saving $900/month toward 10% + closing on a $380,000 home: with a static target you'd arrive in about 3 years. With prices growing 3.5%/yr, the goal grows ~$140/month — so arrival slips several months. This is also the honest counterargument to "wait for a bigger down payment": at some savings rates, waiting for 20% costs more in price growth (and rent) than the PMI it avoids. Compare both paths with the Rent vs Buy Calculator and the PMI line in the PITI Payment Calculator.
Where to Park Down-Payment Money
Under ~5 years to goal: high-yield savings, money market funds, T-bills or CDs. You're being paid 4%+ risk-free; a 30% stock drawdown the year you house-hunt is the catastrophic scenario, and it happens.
Not stocks — the standard advice exists because sequence risk on a dated goal is exactly what equities can't promise around.
First-time buyer programs: state housing agencies offer down-payment assistance (grants, forgivable seconds) with income caps; an hour of research on your state's HFA site can be worth $10,000+.
Retirement accounts, carefully: Roth IRA contributions withdraw penalty-free anytime; up to $10,000 of IRA earnings escape the early-withdrawal penalty for a first home. Weigh against lost compounding (see the 401(k) Early Withdrawal calculator).
How to Use the Calculator
Set the target price and down-payment percentage; leave closing costs on unless someone else is paying them.
Enter current savings, monthly contribution and your account's yield.
Leave price growth at ~3.5% unless your market clearly differs.
Read your arrival date, then the sensitivity table — it prices exactly what saving $225 more per month buys you in time.
Frequently Asked Questions
Should I wait until I have 20% down?
Not automatically. PMI on a 10%-down loan often costs less per year than one year of price appreciation plus the rent you pay while waiting. Run both paths; in rising markets, buying sooner with PMI frequently wins.
Where should the money sit while I save?
High-yield savings, money-market funds or T-bill ladders for anything under ~5 years out. FDIC-insured, currently yielding meaningfully, and immune to the stock drawdown that would wreck a dated goal.
Do gift funds count toward a down payment?
Yes — most programs accept documented gifts from family with a simple gift letter. Lenders verify the money's source, so move gifts into your account well before applying.
What first-time buyer help exists?
State housing finance agencies offer down-payment assistance (grants, zero-interest or forgivable second loans) with income and price caps, plus reduced-rate first mortgages. FHA (3.5% down) and conventional 97 (3% down) programs stack with many of them.
Can I use my 401(k) or IRA?
401(k) loans avoid taxes but risk acceleration if you leave the job; IRA first-home withdrawals waive the 10% penalty on up to $10,000 of earnings (Roth contributions come out free anytime). All trade retirement compounding for house — use the 401(k) Early Withdrawal calculator to see the true cost.
Why does the calculator grow my target?
Because prices don't wait. A static-target calculator flatters your timeline by several months to years; this one tells you when you'll actually arrive.
Is my information private?
Yes — savings figures never leave your browser.
The savings table is the motivational part: it prices your daily choices in weeks-until-keys. Automate the transfer on payday, park it where it earns, claim any first-time-buyer assistance your state offers — and let the date on this page pull you forward.