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Savings Goal Calculator
Tell us what you are saving for and when you need it. We'll work out the monthly amount to set aside, counting the interest your savings earn along the way.
The math behind a savings goal
Your money already saved grows on its own: after n months it becomes S × (1 + r)n, where r is the monthly rate. The rest of the goal has to come from deposits, and a series of equal monthly deposits grows to D × ((1 + r)n − 1) ÷ r. Solving for D gives the deposit you need.
Example: $20,000 house deposit in 3 years
You have $2,000 and want $20,000 in 36 months, saving in an account paying 4% APY. Your $2,000 grows to about $2,250 on its own. Deposits of about $465 a month make up the rest. Over the three years your deposits total about $16,750 and interest adds about $1,250. Without interest you would need $500 a month.
Common savings goals
- Emergency fund: 3 to 6 months of essential expenses. See the emergency fund calculator.
- Home down payment: 3% to 20% of the price, plus 2% to 5% for closing costs.
- Car: paying cash, or a 20% down payment to keep the loan small.
- Holiday or wedding: short goals where a high-yield savings account is ideal.
Frequently asked questions
How much should I save each month?
Divide what you still need by the number of months left, then subtract a little for interest. To save $18,000 more in 36 months you need $500 a month without interest, or about $465 in a 4% savings account.
Where should I keep money for a goal within 5 years?
Use something that cannot fall in value: a high-yield savings account, money market fund, CDs or Treasury bills. Stocks are better suited to goals more than five years away.
How can I reach my goal faster?
Automate a transfer on payday, put windfalls such as tax refunds and bonuses toward it, and cut one recurring cost and redirect it. Even $50 a month more on a 3-year goal adds $1,800 plus interest.