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.
Worked examples
Each scenario below is computed by the same engine that powers the calculator above — not hand-estimated. Change the inputs above to see how your own numbers compare.
Starter home: $70,000 total target in 4 years
Down payment + closing costs + reserve for a $350,000 starter home. Saving $70,000 in 48 months at 4%.
- Goal amount
- $70,000
- Deadline
- 4 yr
- Annual rate
- 4%
- Total contributed
- $64,666
- Interest earned
- $5,334
Including closing costs in the savings target is the most common planning mistake — $70,000 vs $60,000 changes the required monthly significantly. Account for the full cost from day one.
20% down payment with a $10,000 head start
Saving $80,000 (20% of a $400,000 home) in 36 months with $10,000 already set aside at 4.5%.
- Goal amount
- $80,000
- Deadline
- 3 yr
- Starting balance
- $10,000
- Annual rate
- 4.5%
- Total contributed
- $74,162
- Interest earned
- $5,838
The $10,000 head start earns 36 months of interest and reduces the required monthly significantly. Any existing savings earmarked for a home purchase should be deployed immediately.
Monthly savings to reach various house savings targets by deadline
Required monthly savings (rows = total goal, columns = months) at 4% APY with no starting balance. Goal includes down payment + closing costs.
| Total savings target | 2 yr | 3 yr | 4 yr | 5 yr | 6 yr |
|---|---|---|---|---|---|
| $30,000 | $1,203 | $786 | $577 | $452 | $369 |
| $50,000 | $2,005 | $1,310 | $962 | $754 | $616 |
| $70,000 | $2,806 | $1,833 | $1,347 | $1,056 | $862 |
| $90,000 | $3,608 | $2,357 | $1,732 | $1,357 | $1,108 |
| $120,000 | $4,811 | $3,143 | $2,309 | $1,810 | $1,477 |
Total target = down payment + 3–5% of purchase price for closing costs + $5,000–$15,000 move-in reserve. Always include all three.
What affects your results
These are the real inputs that move the needle — ranked by how much each one changes your outcome. All rates in this calculator are user-supplied; this tool does not access live market data.
Most buyers undercount by 10–15% by ignoring closing costs and move-in reserve. Setting the right target from day one prevents arriving short at closing.
Extending your timeline from 3 to 4 years on an $80,000 goal reduces the required monthly by about $450. Timeline flexibility is the most accessible lever.
Choosing 10% instead of 20% down halves the savings target — but adds PMI to your mortgage. The right percentage depends on your market's appreciation rate, your mortgage rate, and how much the PMI costs.
On a 4-year, $80,000 savings goal, 4.5% vs. 0.5% APY earns about $5,500 more in interest. A HYSA is worth using — real money at this scale.
Common mistakes to avoid
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Setting the savings goal as 'down payment only.' Adding 5% of the purchase price covers most closing costs and move-in expenses — a more realistic total target.
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Investing the house savings in stocks. If markets correct in the year you planned to buy, you may face a multi-year delay. HYSA for a 1–5 year purchase horizon.
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Moving money out of your house fund during a good market run. The house fund has a specific job — keep it separate and off-limits for anything else.
Key takeaways
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Build your total target as: down payment + (3% × loan amount) for closing + $10,000 move-in reserve. Enter this in the calculator for the real monthly number.
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Name the savings account 'Home Purchase Fund 2027' (or your target year). Named accounts with a visible goal are less likely to be raided for unrelated spending.
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Re-run the calculator every 6 months with your current balance as the starting balance. Progress compounds — your updated monthly is typically lower than the original estimate.
More questions answered
How much cash do you need to buy a house?
In total: down payment (3–20% of purchase price) + closing costs (2–5% of loan amount) + move-in reserve ($5,000–$15,000). On a $350,000 home with 10% down: $35,000 + ~$9,000 closing costs + $10,000 reserve = approximately $54,000 total.
How long does it take to save for a house?
At $1,000/month and 4% APY from $0, you reach $50,000 in about 47 months, $70,000 in about 66 months. The right timeline depends on how much you can save monthly and what your total target is — enter your numbers above for the exact figure.
Should I put 10% or 20% down on a house?
20% eliminates PMI and reduces the loan amount and interest paid over time. 10% gets you into the market sooner. In fast-rising markets, the appreciation gain from buying earlier can outweigh the PMI cost. Model both scenarios with a mortgage calculator once you're close to purchasing.
Where should I keep my house savings?
A dedicated HYSA — FDIC insured, fully liquid, and currently paying 4–5% APY. Keep it separate from your emergency fund and your everyday checking account. For funds more than 12 months out, a CD ladder can lock in slightly higher rates.