How much should I save for a down payment in 2026?

The classic target is 20 percent to avoid PMI on a conventional loan. Most first-time buyers put 6 to 10 percent down. Conventional loans accept as little as 3 percent, FHA 3.5 percent, and VA/USDA 0 percent for qualifying borrowers.

Does this calculator factor in home price appreciation?

Yes. Both your savings (with compound interest) and the home price (with appreciation) grow each month. The calculator finds the month when your savings equal the down payment percentage of the appreciated home price.

What return rate should I assume on my savings?

For a short-term goal under 3 years, use a high-yield savings rate around 4 to 5 percent in 2026. For 5+ year goals you might use a conservative mix at 5 to 7 percent. Don't put a near-term down payment in stocks.

What if home prices rise faster than my savings?

The calculator flags this case. When price appreciation outpaces your savings rate plus monthly contributions, your down payment target becomes a moving target you may never hit. Options: increase monthly savings, lower target down payment, look in lower-cost areas, or buy sooner with a smaller down payment.

Should I include closing costs in my savings target?

Yes. Closing costs run 2 to 5 percent of the home price on top of your down payment. The calculator's target field should include both. For a $400K home with 10 percent down plus 3 percent closing costs, save $52K total.

Down Payment Savings Calculator (2026)

Saving up the down payment + closing costs is usually the longest part of becoming a homeowner. This calculator factors in compound interest on your savings, home price appreciation, and your target down payment percentage to tell you exactly when you’ll be ready to buy.

Down Payment Savings Calculator

How long until you’ve saved enough for the down payment + closing costs?

Target home price

Down payment (%)

Closing costs (% of price)

Current savings

Monthly savings contribution What you can realistically set aside each month.

Savings account / investment return (% / yr) HYSA ~4-5%. CD or T-bills ~4-5%. Bond fund ~5-6%. Stocks higher but more risk.

Home price appreciation (% / yr) Long-run US average ~3-4%. Current market may differ.

Time to reach goal

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Time to save for the down payment + closing costs, factoring in compound returns and home price appreciation.

Cash needed today

Cash needed at goal

Interest earned

Future home price

See what mortgage rate you’d qualify for

Estimates only. Real savings outcomes depend on actual returns, inflation, and your ability to maintain monthly contributions. Not financial advice.