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Savings Goal Calculator

How much to save each month to reach a goal by a date, counting what you have already and the interest it earns.

To reach $20,000 in 3 years from $2,000, save $466 a month at 4% APY. Interest adds $1,246 of it.

Save each month
$466
You put in
$18,754
Interest earned
$1,246
Without interest you would need
$500 a month
Savings balance each month toward $20,000$0$5k$10k$15k$20k061218243036Months━Balance━Money put in

Saving from zero at 4% APY: the monthly amount for each goal and timeline

Goal1 year2 years3 years5 years
$5,000$410$201$132$76
$10,000$819$402$263$152
$20,000$1,637$803$525$303
$50,000$4,093$2,006$1,311$756
$100,000$8,185$4,012$2,622$1,512

How this calculator works

What you have saved grows at the APY for the whole period. The rest must come from equal monthly deposits, each earning interest from the month it goes in.

Monthly deposit = (goal − savings grown) × r ÷ ((1 + r)^n − 1), where r is the monthly rate equivalent to the APY and n the number of months.

What it assumes

  • The APY stays the same. Savings rates change; a CD fixes it for the term.
  • Deposits at the end of each month, and no withdrawals.
  • Interest before tax; it is taxed each year as income.

Questions people ask

How much should I save each month to reach $10,000?

At 4% APY from zero: $819 a month for one year, $402 for two, $263 for three.

How much does interest help?

Over a few years, a little: saving $20,000 in 3 years at 4% takes $525 a month instead of $556 with no interest. Over longer periods it matters much more.

Where should I keep money for a goal?

For goals a few years away, an FDIC- or NCUA-insured high-yield savings account or a CD that matures when you need the money. Money for goals under five years usually shouldn't be in stocks.

What if I can't save that much?

Push the date back or lower the goal; the calculator updates as you type. Automating a transfer on payday makes any amount easier to keep up.

Related calculators

  • Emergency Fund CalculatorHow big your emergency fund should be, from your essential monthly spending and the months you want to cover, and how long it takes to build.
  • Savings CalculatorWhat a savings account grows to at an APY, with a deposit every month, year by year.
  • CD CalculatorWhat a certificate of deposit earns by maturity, and what you keep if you close it early and pay the penalty.

Sources

Updated by the RateHerald team. The maths is tested against worked examples; report a problem.

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