Chasing a moving target
Saving the full price of a home means racing house prices, which have historically risen over the long run. The calculator grows both your savings and the home price each month and finds when savings catch up. Saving $2,000 a month at 6% toward a $350,000 home rising 3.5% a year takes about 13 years, by which time the same home would cost around $550,000.
In practice, many people buy with a mortgage and then pay it off early, which lets them live in the home sooner while still saving on interest.
Common questions
Is it better to buy a house in cash?
Cash avoids interest and closing costs tied to a loan, but ties up a lot of money and takes years to save.
How fast do house prices rise?
Over long periods US home prices have risen a little faster than inflation on average, with big swings by region and decade.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.