Home deposit savings planner

Set a savings target that includes the move

A home deposit is one part of the money needed to buy. The deposit savings planner lets you set a target property price and deposit percentage, then add a separate purchase-cost reserve. Keeping those figures distinct helps prevent legal fees, tax or removals from quietly consuming money you intended to put towards the property.

The tool is a savings projection, not a statement that a lender will accept your chosen deposit or that a suitable property will remain at the target price. Use a price you want to investigate, a reserve based on your developing budget and a monthly contribution you can actually consider within your household spending.

How the target and projection are calculated

The deposit target equals the property price multiplied by the deposit percentage. The purchase-cost reserve is then added to produce the overall savings target. The current gap is the target less existing savings, with a minimum of zero. Existing savings above the target therefore produce a zero gap rather than a negative requirement.

For the projection, the annual assumed savings rate is divided by 12 to create a monthly rate. Each month, the existing balance earns that modelled interest and the monthly contribution is added at the month’s end. The tool repeats this for the number of saving months you enter. This timing matters: money contributed at the end of a month does not earn a full month’s interest immediately.

The required monthly contribution is the amount that would reach the target under the same assumptions. At a zero savings rate, it is the outstanding gap divided by the number of months. At a positive rate, the calculation allows for the growth of both the starting balance and successive contributions. Savings interest tax and account-specific restrictions are not included.

Worked example: reaching a £28,000 target

Imagine a target property price of £240,000 and a chosen deposit of 10%. That creates a £24,000 deposit target. Adding a £4,000 purchase-cost reserve produces an overall target of £28,000. If existing savings are £10,000, the current gap is £18,000.

With 24 months available, no assumed interest and £750 contributed at the end of every month, projected savings are £10,000 + (24 × £750) = £28,000. The remaining projected gap is zero and the required monthly contribution is £750. These are hypothetical planning inputs, not a recommended deposit level, current property valuation or expected savings return.

Try a second version with a higher purchase-cost reserve or a lower monthly contribution. This shows whether the target depends on an optimistic assumption. It is often more useful to see a genuine shortfall early than to force the plan to balance by entering a savings rate that is not available to you.

Check what the reserve needs to cover

Build the reserve from your actual situation: professional quotes, property purchase tax, mortgage fees, removal arrangements and any overlap. MoneyHelper’s first-time buyer guide identifies purchase costs beyond the deposit and explains routes for mortgage support. The calculator itself does not add these costs automatically.

Keep emergency or otherwise committed savings out of the entered balance if they are not genuinely available for this goal. A balance in an account with withdrawal conditions may not be usable on the date you need it. Check the account’s actual terms, rate and any relevant tax treatment rather than treating the projection as a guaranteed maturity value.

Use the mortgage payment calculator to explore what the remaining borrowing would cost, and revisit the savings target when property price, timing or quotes change. There is no universal “typical deposit” that establishes mortgage availability for every buyer.

How to use this tool

1. Set the full target. Choose a property price and deposit percentage, then enter a separate reserve for the purchase and move costs you expect to pay from savings.

1. Enter realistic saving inputs. Add the balance available for this goal, the monthly contribution, the number of months and an explicit interest assumption. Zero interest is a valid scenario.

1. Review the shortfall. Compare projected savings with the target and required contribution. Adjust timing or assumptions transparently rather than treating the tool as a promise of investment or mortgage outcomes.

Frequently asked questions

Does a 10% target mean I qualify for a 90% mortgage?

No. The percentage is your planning choice. A lender separately considers the borrower, property and product conditions; the tool does not assess eligibility.

Does the savings rate include tax or account limits?

No. It is a simple monthly-compounding assumption with month-end contributions. Check the actual account’s rate, access rules, contribution limits and any tax treatment separately.

What if I enter zero months?

The goal is treated as immediate. If savings already cover it, the target is reached; otherwise there are no saving months available to calculate a new contribution plan.