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Savings Goal Calculator

This savings goal calculator works out how much you need to save each month to reach a target amount by a set date, taking into account what you've already saved and the interest your savings earn along the way.

Use a decimal for months: 1.5 = 18 months.

Result

Save $264.83 a month

Time to goal5 years
Your total deposits$17,889.84
Interest earned$2,110.16
Current savings grow to$2,441.99

Results update as you type.

How the Savings Goal Calculator Works

The calculator splits your goal into two parts:

  1. What your current savings grow to: current savings × (1 + r)^n
  2. The monthly deposit that covers the rest:

Monthly deposit = (goal − current savings × (1 + r)^n) × r ÷ ((1 + r)^n − 1)

  • r = monthly interest rate. With monthly compounding, r = annual rate ÷ 12.
  • n = number of months = years × 12

At 0% interest this becomes simply (goal − current savings) ÷ n. If your current savings already grow past the goal, no deposits are needed.

Worked Example

You want $20,000 in 5 years, you’ve saved $2,000, and your account pays 4% compounded monthly:

  1. Monthly rate: 0.04 ÷ 12 = 0.003333; months: 5 × 12 = 60
  2. Growth factor: 1.003333^60 = 1.2210
  3. Current savings grow to: 2,000 × 1.2210 = $2,441.99
  4. Still needed: 20,000 − 2,441.99 = $17,558.01
  5. Monthly deposit: 17,558.01 × 0.003333 ÷ (1.2210 − 1) = $264.83

Your deposits total $2,000 + 60 × $264.83 = $17,889.84, and interest makes up the remaining $2,110.16. Without interest, you’d need $300 a month.

Tips for Reaching a Savings Goal

Automate it

Set up an automatic transfer for the monthly amount on the day you’re paid, so the money is saved before it can be spent.

Give each goal its own account

Keeping a down payment, a car fund or an emergency fund in a separate account makes it easy to see your progress.

Pay off expensive debt first

Credit card interest is usually much higher than what savings earn. The debt payoff calculator shows how quickly extra payments clear a balance.

Longer-term goals

For goals decades away, see how growth compounds with the compound interest calculator, or plan for retirement with the retirement calculator.

Frequently Asked Questions

How much do I need to save each month to reach my goal?

Without interest, divide what you still need by the number of months. $10,000 in 3 years is 10,000 ÷ 36 = $277.78 a month. With interest, you need a little less each month, because your deposits earn money too. At 4% compounded monthly it's $261.91.

What formula does the savings goal calculator use?

It first works out what your current savings will grow to, then finds the monthly deposit that covers the rest. Monthly deposit = (goal − current savings × (1 + r)^n) × r ÷ ((1 + r)^n − 1), where r is the monthly interest rate and n is the number of months.

How much does interest help?

More the longer the deadline. Saving $50,000 over 10 years takes $416.67 a month with no interest, but $339.56 a month at 4% compounded monthly, because interest supplies about $9,250 of the total.

What interest rate should I use?

For a savings account, money market account or CD, use the rate the bank quotes, usually shown as the APY. Rates on savings accounts can change at any time, so it can help to run the numbers at a lower rate too. For money you may need within a few years, a rate from an insured savings product is the realistic choice.

Where should I keep money for a savings goal?

For short-term goals, many people use a federally insured savings account or CD. The FDIC insures deposits at insured banks up to $250,000 per depositor, per bank, for each ownership category. Investments such as stocks can grow more over long periods but can also lose value.

What if I can't afford the monthly amount?

Try a later deadline or a smaller goal and see how the monthly amount changes. Automatic transfers on payday make it easier to save consistently, even if you start with a smaller amount.

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