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.
Cash buyer versus mortgage
Paying cash avoids interest, closing costs tied to the loan and the risk of a payment you cannot afford, which is why some people choose it. The trade-off is time and concentration. Saving the full price can take a decade or more while you pay rent, and once you buy, a large share of your wealth is tied up in one asset that you cannot easily spend.
Many buyers find a middle path works best: save a solid down payment, take a mortgage with a payment well within budget, and then make extra payments to clear it early. That gets you into the home sooner while still cutting interest. The down payment calculator and the mortgage payoff calculator show how both parts of that plan work.
Common questions
How long does it take to save for a house in cash?
Saving $2,000 a month at 6%, with $30,000 already saved, toward a $350,000 home rising 3.5% a year takes about 13 years in this calculator's example.
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.