What buying a home actually costs in year one.

Year-one cash burn isn't 12 × monthly cost. It's significantly more.

Most affordability tools focus on the monthly payment. That's the right number for "can I keep this home long-term?" — but a different question matters first: "do I have enough cash to start?" Year-one is structurally more expensive than year-two through year-thirty because of one-time costs that don't repeat.

For a typical $425,000 home with 10% down, the year-one math looks roughly like this:

• Day-zero cash: $42,500 down + $12,750 closing + $2,500 escrow buffer + $1,900 move-in costs = ~$59,650 at closing.
• One-time setup: $3,500 appliances/furniture + $2,500 first-90-day repairs + $600 yard equipment = ~$6,600 in the first three months.
• 12 months of carrying cost: ~$3,500/month × 12 = ~$42,400.
• Year-one total: roughly $108,650 — about 25% of the home's purchase price.

That's the honest cash-flow picture. The down payment is the largest single number, but it's also the only one that's recoverable at sale. Everything else is consumed in year one.

Why "I have enough for the down payment" usually isn't enough

The most common cash-readiness mistake is treating the down payment as the goal. A buyer with exactly enough for 20% down often closes with empty reserves and discovers the move-in expenses, the first repair, and the property-tax escrow shortage in the first 90 days. The right cash threshold for buying isn't "20% down." It's "20% down + closing costs + 6 months of carrying cost in reserve + setup buffer." The calculator's day-zero number plus the one-time setup approximates this.

The escrow buffer surprise

At closing, lenders typically require you to fund 2–6 months of property tax and insurance upfront — even if your first tax bill isn't due for 8 months. This is the "escrow cushion" or "prepaid escrow," and it ranges from $2,000 to $6,000 on a typical home. The money sits in your escrow account; you'll get it back when you sell or refinance. But you need it in cash on closing day, and it's a line item that surprises first-time buyers nearly every time.

What "immediate repairs" usually means

Even on a clean inspection, the first 90 days of homeownership reveal items the inspector didn't catch or didn't flag. Common ones: HVAC that needs cleaning ($300–$800), gutter issues ($200–$600), pest treatment after move-in ($200–$500), locksmith and rekey ($150–$300), garage door spring failure ($200–$400), water heater quirks ($0–$1,500), and the painting you swore you wouldn't do but did. A $2,000–$3,500 repair budget for the first quarter is realistic; under-budgeting it doesn't make the costs go away.

How to use this calculator honestly

Run the defaults first to see the structure. Then replace each number with your specific situation: your actual quoted closing costs, your actual moving estimate, an honest read of how much furniture you'll need to buy, and an honest read of what you expect to fix in the first 90 days. The total at the bottom is the cash you should have liquid at closing. If you don't have it — without emptying your reserves — buying this specific home at this price isn't yet a cash-ready decision, regardless of whether the monthly payment fits your budget.