How much should I save per month for a house down payment?

To save a 20% down payment ($84,000) on the median $420,000 home in 5 years, you need to save $1,400 per month. In 3 years, you need $2,333 per month. Use a high-yield savings account earning 4-5% to shorten your timeline.

What is the fastest way to save for a down payment?

Target a 3.5% FHA down payment first ($14,700 on a $420,000 home), park savings in a high-yield account, cut one large expense category, and take advantage of any first-time homebuyer assistance programs in your state.

Is it better to put 10% or 20% down on a house?

20% down eliminates private mortgage insurance (PMI) costing $100-300/month, but waiting longer means paying more rent. Many buyers compromise with 10-15% down to avoid years of extra renting while keeping monthly costs manageable.

How Long Does It Take to Save for a House Down Payment?

Q: How long does it take to save for a house down payment?

On a $70,000 salary saving 20% of your income, it takes about 3 years to save a 10% down payment on the median-priced home ($420,000). A 20% down payment takes about 6 years. First-time buyers using FHA loans can close with 3.5% down in under 2 years on the same income and savings rate.

The median U.S. home price is around $420,000 as of early 2026. How long it takes you to save for a down payment depends on three things: your income, your savings rate, and what percentage down you’re targeting.

Down Payment Amounts at Different Home Prices

Home Price	3.5% (FHA)	10% Down	20% Down
$250,000	$8,750	$25,000	$50,000
$300,000	$10,500	$30,000	$60,000
$350,000	$12,250	$35,000	$70,000
$400,000	$14,000	$40,000	$80,000
$420,000	$14,700	$42,000	$84,000
$500,000	$17,500	$50,000	$100,000
$600,000	$21,000	$60,000	$120,000

How Long to Save: 3.5% FHA Down Payment

Based on a $420,000 median home price ($14,700 needed):

Monthly Savings	Time to 3.5% Down
$300	4 years 1 month
$500	2 years 5 months
$750	1 year 8 months
$1,000	1 year 3 months
$1,500	10 months
$2,000	7 months

How Long to Save: 10% Down Payment ($42,000)

Monthly Savings	Time to 10% Down
$300	11 years 8 months
$500	7 years
$750	4 years 8 months
$1,000	3 years 6 months
$1,500	2 years 4 months
$2,000	1 year 9 months
$2,500	1 year 5 months

How Long to Save: 20% Down Payment ($84,000)

Monthly Savings	Time to 20% Down
$500	14 years
$750	9 years 4 months
$1,000	7 years
$1,500	4 years 8 months
$2,000	3 years 6 months
$2,500	2 years 10 months
$3,000	2 years 4 months
$4,000	1 year 9 months

Savings Timeline by Annual Income

Assumes saving 15% of gross income toward the down payment.

Annual Income	Monthly Savings (15%)	10% Down	20% Down
$50,000	$625	5.6 years	11.2 years
$60,000	$750	4.7 years	9.3 years
$70,000	$875	4 years	8 years
$80,000	$1,000	3.5 years	7 years
$90,000	$1,125	3.1 years	6.2 years
$100,000	$1,250	2.8 years	5.6 years
$120,000	$1,500	2.3 years	4.7 years
$150,000	$1,875	1.9 years	3.7 years

These timelines assume zero yield on savings. A 4.5% HYSA reduces them by 6-12 months.

Effect of High-Yield Savings on Your Timeline

Parking your down payment savings in an HYSA earning 4.5% APY vs. a standard account (0.5%) noticeably shortens the timeline:

Monthly Savings	Standard (0.5%)	HYSA (4.5%)	Months Saved
$750	56 months	48 months	8 months
$1,000	42 months	37 months	5 months
$1,500	28 months	25 months	3 months
$2,000	21 months	19 months	2 months

Based on $42,000 (10% down) target.

What PMI Costs If You Put Less Than 20% Down

Putting less than 20% down means paying PMI each month until you reach 20% equity. Here’s what that adds up to:

Home Price	PMI Monthly Cost	PMI Annual Cost
$300,000	$75–$150	$900–$1,800
$420,000	$105–$210	$1,260–$2,520
$500,000	$125–$250	$1,500–$3,000

PMI on a $420,000 home typically lasts 5-8 years before you reach 20% equity through payments alone.

Don’t Forget Closing Costs

Closing costs add 2-5% of the home price on top of the down payment:

Home Price	Closing Costs (2-5%)	Total Cash Needed (10% down)
$300,000	$6,000–$15,000	$36,000–$45,000
$420,000	$8,400–$21,000	$50,400–$63,000
$500,000	$10,000–$25,000	$60,000–$75,000

Many buyers are surprised by closing costs. Budget for the full cash-to-close, not just the down payment.

Practical Ways to Save Faster

Automate first: Set up automatic transfers to an HYSA the day you get paid. Treating it like a bill is the only reliable method for most people.

Target the FHA threshold first: Getting to 3.5% down ($14,700 on a $420K home) opens the door much faster than waiting for 20%. You can always refinance later.

Move to a lower cost-of-living area temporarily: Renting in a lower COL area for 2-3 years while saving for a home in your target city is a real strategy for high-price markets.

First-time homebuyer programs: Many states offer down payment assistance grants and forgivable loans that cut the required down payment to near zero. Check your state housing finance agency.