Savings goal calculator

What is the Savings Goal Calculator?

This calculator works out the numbers behind reaching a specific savings target, whether that's an emergency fund, a down payment, a vacation, or any other goal. It can solve two different questions: how much you need to save each month to hit your goal by a certain date, or, if you already know how much you can save each month, how long it will take to get there.

How to use it

1. Choose which question you're asking: "How much should I save?" or "How long will it take?"
2. Enter your savings goal and any current savings you're starting with.
3. Enter an expected annual interest rate for wherever you're keeping the money (a high-yield savings account, for example).
4. Depending on the mode, enter either your timeframe or your planned monthly contribution.
5. Click Calculate to see your result, along with a year-by-year breakdown of how your balance grows.

How the calculation works

Your final balance comes from two sources growing together: your current savings compounding on its own, and your regular monthly contributions, each of which also earns interest for whatever time remains until your goal date. When solving for the required contribution, the calculator works backward from your goal to find the exact monthly amount that, combined with your starting balance and interest earned, lands you exactly at your target. When solving for time, it searches forward month by month until your growing balance reaches the goal.

Why interest rate matters, even for short-term goals

For short timeframes or modest amounts, interest earned might seem like a rounding error, but it adds up more than people expect, especially with today's higher-yield savings accounts. Keeping goal money in a high-yield savings account instead of a checking account earning close to 0% can meaningfully reduce how much you need to contribute each month, or shorten how long it takes to reach your goal, for essentially no extra effort.

Common uses

• Planning a monthly savings amount for an emergency fund
• Working out how much to set aside each month for a house down payment
• Figuring out how long it'll take to save for a big purchase like a car or vacation
• Checking whether a savings goal is realistic given your current budget
• Comparing how a higher-yield account changes your required monthly contribution

Frequently asked questions

What if my current savings already exceed my goal?

If your current savings, even before any further contributions or interest, already meet or exceed your goal, you've effectively already reached it, no further monthly contribution is needed.

Does this assume I add money at the same time every month?

Yes, it assumes a consistent monthly contribution added at the end of each month, which is the typical pattern for automated savings transfers.

What interest rate should I use?

Use the actual rate offered by wherever you're keeping the savings, high-yield savings accounts and money market accounts typically offer higher rates than standard checking or basic savings accounts, check your specific account's current rate for the most accurate projection.

Why does "how long will it take" sometimes show a very long time or an error?

If your monthly contribution and interest rate are too low relative to the size of your goal, it may take an unreasonably long time (or effectively never, in extreme cases) to reach it. Try increasing your monthly contribution or double-checking your goal amount.