Saving for a house is not just the down payment. Most first-time buyers underestimate the total cash needed at closing — a gap that can derail a purchase even when the down payment is ready. Before you pick a monthly savings number, it helps to understand the full target.
Once you know your target, this calculator handles the monthly math. Enter your savings goal and timeline, and it shows exactly what to set aside each month, the interest your account earns along the way, and a month-by-month projection.
What goes into the total savings target
Down payment is the largest piece: typically 3–20% of the purchase price depending on your loan type. But closing costs add 2–5% of the loan amount — on a $350,000 home with a $60,000 down payment, closing costs of 3% on the $290,000 loan add about $8,700 more. Many first-time buyers also want a move-in reserve of $5,000–$10,000 for immediate repairs or furniture.
A conservative planning rule: add the down payment plus 5% of the purchase price for total pre-purchase costs. On a $350,000 home with a 15% down payment ($52,500), the planning number is roughly $52,500 + $17,500 = $70,000.
Down payment percentages and what they mean
Putting down less than 20% on a conventional loan typically triggers private mortgage insurance (PMI), which adds $50–$200/month to your payment depending on loan size. FHA loans require only 3.5% down but carry their own insurance premium. VA and USDA loans offer 0% down to qualifying buyers but come with eligibility requirements.
The question of whether to put down 10% and buy sooner versus waiting for 20% depends on your market and rate environment. Larger down payments reduce your monthly mortgage payment and the total interest you pay over the loan's life — run both scenarios when you are close to purchasing.
Building the right savings plan
Enter your full target (down payment + estimated closing costs + reserve) as the goal above. Enter your deadline in months. The calculator shows what to save each month at your current interest rate.
Keep house savings in a dedicated high-yield savings account — separate from your emergency fund and separate from your everyday account. Mixing them makes it harder to track progress and easier to accidentally spend.
Frequently asked questions
How much cash do I need to buy a house?
You need the down payment (3–20% of purchase price depending on loan type) plus closing costs (2–5% of the loan amount) plus a move-in reserve ($5,000–$15,000 is typical). Total: often 8–25% of the home price in cash, depending on your loan and local costs.
What is the minimum down payment for a first-time buyer?
Conventional loans: 3% (with PMI). FHA loans: 3.5% with a 580+ credit score. VA and USDA loans: 0% for qualifying buyers. The minimum gets you in the door, but a larger down payment reduces your monthly mortgage payment.
Should I save 10% or 20% down?
20% eliminates PMI and reduces interest paid over the life of the loan. 10% gets you into the market sooner. In fast-rising markets, the appreciation gain from buying earlier can exceed the PMI cost. In flat markets, 20% usually wins mathematically.
How long does it take to save $60,000 for a house?
At $1,000/month with 4% APY, about 55 months. At $1,500/month, about 36 months. At $2,000/month, about 26 months. Enter your monthly capacity in Mode A above for your exact timeline.