How long to save your house deposit, net of DIRT.
Time to reach deposit
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Deposit target
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Still to save
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What a deposit really has to cover
A mortgage deposit in Ireland is usually framed as 10 percent of the purchase price for a first-time buyer, the figure this tool defaults to. That is the Central Bank minimum, and it is the number that drives the savings timeline. What it does not include is the rest of the cash a purchase swallows: stamp duty at 1 percent on homes up to €1 million, legal fees, a structural survey, and valuation costs. This calculator answers one focused question, how long until you hit the deposit itself, and it is honest about the one tax most people forget when they project their savings forward.
Why DIRT slows you down
Interest earned on an Irish deposit account is taxed through DIRT, Deposit Interest Retention Tax, at 33 percent. The bank deducts it at source, so the rate advertised on your savings account is not the rate you actually compound at. This tool builds that in. If your account pays 3 percent, the after-DIRT return is 3 percent times 0.67, which is 2.01 percent. Over a few years that gap is the difference between a projection that holds and one that quietly overstates your balance. It is also why, beyond an emergency buffer and a deposit you will need soon, longer-term money often does better in a pension or an investment, though those carry their own risks and the 41 percent exit tax on funds.
Saving for a €35,000 deposit
Picture a buyer targeting a €350,000 home with a 10 percent deposit, so €35,000. They already hold €10,000, save €1,000 a month, and earn 3 percent before DIRT, which the tool treats as 2.01 percent net. Each month the balance grows by one twelfth of that net rate and then the €1,000 is added.
| Deposit target (10 percent of €350,000) | €35,000 |
| Starting savings | €10,000 |
| Monthly saving | €1,000 |
| Net return after 33 percent DIRT | 2.01 percent |
| Time to reach the deposit | 2 years 1 month |
It takes 25 months to cross the line, just over two years. Notice how the heavy lifting comes from the €1,000 monthly habit, not the interest. The €10,000 head start matters far more than the rate. Drop the monthly figure to €700 and the timeline stretches past three years, which tells you where to focus if you want to buy sooner. The same logic cuts the other way too: a windfall, a bonus or a tax refund dropped straight into the deposit pot shortens the wait far more than chasing a slightly higher savings rate ever will.
Help to Buy can shorten the road
If you are buying or building a new home, the Help to Buy scheme can refund income tax and DIRT you have already paid, up to €30,000 or 10 percent of the price, toward your deposit. For a new build that can effectively supply a large chunk of the deposit this tool is asking you to save. It does not apply to second-hand homes, so the manual saving in this calculator is the realistic path for most buyers in the existing market. Treat any Help to Buy refund as a reduction in the gap, then re-run the numbers.
Should I keep my deposit in a savings account at all?
For money you will spend within a couple of years, yes. A deposit you might need soon should not be exposed to market swings, even with DIRT eating the modest interest. The certainty is worth more than the extra return when a house purchase is close.
Do lenders accept gifted deposits?
Most do, but they will want a signed letter confirming the money is a genuine gift and not a loan, since a hidden loan affects your repayment capacity. A gift from a parent can also have Capital Acquisitions Tax implications above the Group A threshold of €400,000 over a lifetime, so large gifts are worth flagging to your solicitor.