Savings Goal Calculator
Free savings goal calculator. Find the monthly deposit you need to reach any savings target by a specific date — emergency fund, vacation, down payment.
Quick answer
Monthly deposit = (target − current × (1+r)^n) × r ÷ ((1+r)^n − 1), where r is the monthly return and n is the number of months. The math is brutally sensitive to time horizon — doubling the timeframe roughly halves the required monthly contribution.
Savings Goal Calculator
How it works
Calculates how much your savings will grow over time given a starting balance, monthly contributions, an interest rate, and a number of years. Uses the future-value-of-an-annuity formula combined with simple compound growth on the initial deposit.
When to use it
Use this to set a realistic savings goal — for a down payment, a wedding, an emergency fund, or college tuition — and to see whether your current monthly contribution will actually get you there in time.
Common mistakes
Assuming a high annual return (8%+) for short-term savings goals. Stock-market returns are only realistic over 10+ year horizons; for goals under 5 years, a high-yield savings rate (4–5%) is closer to reality.
How the savings goal calculator works
This is the future-value-of-annuity formula solved for the monthly payment. You enter a target amount, current savings, expected annual return, and the number of months until you need the money. The calculator computes the monthly deposit that, combined with growth on your existing balance and the deposits themselves, will hit the target. The longer the timeframe, the smaller each contribution needs to be — compounding does most of the heavy lifting on horizons over 5 years.
When to use it
Run this for any specific dollar-by-date goal: emergency fund, house down payment, wedding, car, vacation, or kids' college. Be honest about the return you can earn — 5-7% real for diversified stock holdings, 1-2% for high-yield savings, 0% if it's sitting in a regular checking account. The shorter your horizon (under 3 years), the more you should assume cash returns rather than market returns, because you can't ride out a downturn.
Common mistakes
- Assuming stock returns on a 1-3 year goal. If you need the money in 18 months and the market drops 25%, you can't wait for it to recover. Use cash or short-term bond returns for short horizons.
- Setting the goal in today's dollars. A 10-year savings goal needs to be inflated by 2-3% per year to maintain purchasing power. A $20,000 wedding goal in 10 years is really $25,000-$27,000.
- Forgetting employer match or transfer rules. If you have access to an HSA or employer-matched 401(k), the effective monthly contribution needed is lower because of the match.
Frequently asked questions
How much should I save each month for a goal?
It depends on the target, your timeline, and your expected return. The calculator above does the math — but as a rough rule, to save $20,000 in 5 years at a 4% return, you need about $300/month. To save the same $20,000 in 10 years at 6%, you need about $123/month. Time and rate are dramatically more powerful than effort.
What return rate should I use?
For 0-2 year goals, use 1-2% (high-yield savings). For 3-5 year goals, 3-5% (mix of HYSA and short-term bonds). For 10+ year goals, 5-7% real (diversified stocks). Don't bake in the optimistic end of any range.
Should I include my current savings in the calculation?
Yes — the calculator factors that in. If you already have $5,000 toward a $20,000 goal, the math accounts for the growth on that $5,000 over your timeframe, which reduces your required monthly contribution.