Finance & LoansSolves either direction

Savings Goal Calculator

Work backwards from the number you actually need. Set a target and a date and this gives the monthly contribution; set a contribution instead and it gives the date. Interest is compounded monthly throughout.

Your Goal

Choose what you want solved; the other field becomes the answer.

$
$
Savings account or money-market yield
%
years
$
RESULT
Total you contribute
Interest earned
Final balance
Growth share of total

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Saving toward a date is a different problem from saving in general

Most savings advice answers “how much will this grow to?”. A goal asks the reverse: given the number and the deadline, what does that require of me every month? That inversion changes behaviour, because the answer is a single figure you can either afford or cannot.

Why the interest rate matters less than you would hope

Over short horizons, contributions dominate and interest is a rounding error. Saving $300 a month for three years puts in $10,800; at 4% the interest adds roughly $680 — about 6% of the total. Over twenty years the balance flips and growth does most of the work. Check the growth share figure: if it is small, chasing a slightly better rate is not where your effort should go.

Match the account to the horizon

Money needed within about three years does not belong in anything that can fall in value. A high-yield savings account or a short certificate of deposit keeps the number certain. Money with a ten-year horizon can tolerate volatility in exchange for a higher expected return — but the rate you enter should then be an expectation, not a promise.

How the maths works

This is the future value of an ordinary annuity with a lump-sum start: FV = PV(1 + i)n + PMT × ((1 + i)n − 1) / i. Solving for PMT rearranges it; solving for n uses logarithms, falling back to a month-by-month search when the rate is zero.

Frequently Asked Questions

How big should an emergency fund be?
The common guidance is three to six months of essential expenses — rent or mortgage, food, utilities, insurance, minimum debt payments. Not six months of total spending. Households with variable income or a single earner sit at the higher end.
Should I save for a goal while carrying credit card debt?
Keep a small buffer, usually around one month of expenses, then direct everything else at the card. Card rates above 18% outrun any savings yield by a wide margin, so saving alongside high-rate debt loses money every month.
Does the calculator assume contributions at the start or end of the month?
End of month, which is the standard ordinary-annuity convention and matches how most automatic transfers behave. Contributing at the start of each month would produce a marginally higher balance.
What rate should I use for a long-term goal?
For a savings account, use the quoted APY. For an invested goal, a long-run real return assumption of 4–6% after inflation is a common planning figure. Be conservative: a shortfall on a deadline is far more costly than a surplus.