Plan your down payment savings
Down Payment Calculator
Calculate exactly how long it takes to save your down payment with compound interest. Enter your target home price, current savings, and monthly contribution to see your savings timeline.
Enter your details
Target: $90,000
Interest rate on savings account or investment
Time to reach your goal
3 yr 3 mo
To save $90,000 for your down payment.
down payment target
$90,000
20% of purchase price
Current shortfall
$65,000
Interest earned
$8,297
On your savings
After saving your down payment
Loan amount
$360,000
Est. monthly payment
$2,395
At current market rate estimate
How this calculator works
Saving for a property deposit is one of the biggest financial challenges for first home buyers. The key is understanding the compounding effect of consistent saving combined with a reasonable return on your saved funds.
The formula behind this calculator considers your current savings, your monthly contributions, and the compound interest earned on those savings. Even a modest annual return (3–5%) on a high-yield savings account or short-term term deposit can meaningfully accelerate your timeline.
Your target deposit amount depends on the purchase price and your target LVR. In most markets, a 20% deposit allows you to avoid mortgage insurance (PMI in the US, LMI in Australia, CMHC insurance in Canada). A 10% or 5% deposit is possible in some markets but comes with additional costs.
Worked example
- 1Deposit needed: $90,000 (20% of $450,000)
- 2Shortfall: $90,000 - $30,000 = $60,000
- 3Monthly rate: 4.5% ÷ 12 = 0.375%
- 4Using future value formula with $2,000/month contributions...
- 5Result: Reach goal in approximately 29 months (≈ 2 years)
Frequently Asked Questions
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Try calculatorDisclaimer: Calculations are estimates for informational purposes only and do not constitute financial advice. Rates, taxes, and costs vary by state and lender. Consult a licensed mortgage professional before making financial decisions.