Investment Simulator How to save $50,000 for a home down payment
Compare the monthly amount needed for a $50,000 U.S. home down payment in two, three, or five years.
To save $50,000 in today’s U.S. dollars for a down payment in three years, the model calls for $1,495.69 a month at 0% return, or $1,362.03 at a steady 0.5% monthly return.
Monthly savings by deadline
The examples use a constant 0.5% monthly return, 2.5% annual inflation, and 0% tax on gains. Contributions are fixed in dollar terms and made at the start of each month. Both columns adjust the target for inflation. Deposits are rounded up to reach the goal.
| Time | No investment return | 0.5% monthly return |
|---|---|---|
| 2 years | $2,188.81 | $2,055.29 |
| 3 years | $1,495.69 | $1,362.03 |
| 5 years | $942.85 | $806.78 |
Set a target for cash at closing
Keep the down payment separate from closing costs and the cash you want left after moving. Home prices can move differently from general inflation, so update the target as you get closer to making an offer.
Open the three-year example in the calculator and compare its purchasing power with your cash target.