How to use this savings goal calculator
- Savings goal — the amount you want to end up with, such as a house deposit, a car or an emergency fund.
- Current savings — what you have already set aside for it. Enter 0 if you’re starting from scratch.
- Annual return — the yearly interest rate on your savings account, or the return you expect from investments.
- What do you want to work out? — choose Reach my goal by a date and enter the years and months you have, or I can save a fixed amount and enter what you can put away each month.
The results show the monthly amount or the time it takes, what you pay in, how much comes from growth, and the month you reach the goal, counted from this month. “Total you contribute” is the sum of your new monthly deposits; it doesn’t include the savings you already have. The chart and the table show your balance at the end of each year.
How it’s calculated
Each deposit is made at the end of a month, and growth is added monthly at the annual rate divided by 12. With current savings S, a monthly deposit D, a monthly rate i and n months, your balance is:
The months are rounded up, because the goal is reached at a month end. The deposit is rounded up to the next cent, so you finish a few cents over rather than a few cents short. With a 0% return the formulas become simple division: D = (G − S) ÷ n.
Worked example: $30,000 in 3 years
With the default inputs, you want $30,000 in 3 years (36 months). You have $5,000 already, and your savings earn an illustrative 4% a year, so i = 0.04 ÷ 12 = 0.003333.
- Growth factor: (1.003333)36 = 1.127272, so your $5,000 grows to $5,636.36 on its own.
- That leaves $30,000 − $5,636.36 = $24,363.64 to come from deposits and their growth.
- Deposit: $24,363.64 × 0.003333 ÷ 0.127272 = $638.10 a month.
Over 36 months you contribute $22,971.60, and growth adds $2,028.41, for a final balance of $30,000.01:
| Year | Paid in to date | Growth to date | Balance |
|---|---|---|---|
| 1 | $12,657.20 | $345.66 | $13,002.86 |
| 2 | $20,314.40 | $1,017.37 | $21,331.77 |
| 3 | $27,971.60 | $2,028.41 | $30,000.01 |
“Paid in to date” includes the $5,000 you started with. Growth is small in the first year and speeds up as the balance builds.
How time and return change the monthly amount
For the same $30,000 goal and $5,000 start:
| Time and return | Monthly deposit |
|---|---|
| 2 years at 4% | $985.63 |
| 3 years at 0% | $694.45 |
| 3 years at 4% | $638.10 |
| 3 years at 6% | $610.55 |
| 5 years at 4% | $360.42 |
Over a few years, time matters far more than the return. Moving from 4% to 6% saves under $28 a month, but giving yourself two extra years cuts the deposit by $277.68. For the long-run effect of a steady deposit, see how much $500 a month will grow.
If you can save a fixed amount
Switch to I can save a fixed amount and enter $500 a month. Then n = ln((30,000 × 0.003333 + 500) ÷ (5,000 × 0.003333 + 500)) ÷ ln(1.003333) = ln(600 ÷ 516.67) ÷ ln(1.003333) = 44.93, so you reach the goal in month 45: 3 years 9 months. By then you have paid in $22,500, growth has added $2,539.39, and the balance is $30,039.39. At $400 a month it takes 4 years 7 months; at $800 a month, 2 years 6 months.
What this calculator does not include
- Changing returns: it assumes the same rate every month. Savings rates change, and investments rise and fall, so treat a stock-market return as a rough guide over short periods.
- Inflation: a goal set in today’s prices may cost more by the time you reach it. The inflation calculator shows the future cost.
- Tax and fees on interest or investment gains.
- Deposit timing: deposits are made at the end of each month. Saving at the start of the month gets you there a little sooner.
The rate is applied as the annual rate divided by 12. If your account quotes an APY, entering it here slightly overstates the growth; see APY vs APR for the difference. For a single balance growing over many years, use the compound interest calculator.
Frequently asked questions
What return should I enter?
For a savings account, use its interest rate. For investments, pick a cautious figure, and remember that the value can fall just before you need it. For money you need within a few years, a savings account avoids that risk, because the balance can’t drop.
How is the goal date worked out?
It counts forward from the current month, so a 36-month plan shows the same month three years from now. Treat it as the month by which you will have reached the goal, provided you make every deposit.
What if my current savings already cover the goal?
The calculator tells you the goal is already reached. If your savings will grow to the goal by the date on their own, it shows a monthly deposit of $0.00 and the month they get there.
Why does it say I’ll never reach my goal?
With no monthly saving and no return, the balance can’t grow. Enter a monthly amount, or an annual return if you already have savings. If even that would take more than 100 years, the calculator says so instead of showing a date.
Can I save my calculation?
Members can save any calculation and reopen it later from their account. The calculator itself is free for everyone, with instant results and no sign-up. See membership.
Results are estimates for educational purposes and are not financial advice. See our disclaimer.