Money
Savings Goal Calculator
Set a goal and a date: we tell you how much to save each month
This savings goal calculator tells you how much to set aside each month to reach your target: enter the goal, what you already have, the months and, if you want, the annual return.
The key idea
Reaching a goal is not about returns: it is about consistency
To reach $20,000 in 24 months with $2,000 already saved, you need $750 a month with no interest. At 4% a year it drops to about $715: about $35 less a month. Over short terms, what moves the result is how much you set aside and when you start.
How it is calculated
With no return, split what is left over the months: (Goal − Saved) / months. With a monthly return i:
Deposit = (Goal − Saved × (1 + i)ⁿ) × i / ((1 + i)ⁿ − 1)
The annual return is divided by 12 and compounded monthly. Deposits are made at the end of each month.
Worked example
You want $20,000 in 24 months and have $2,000. With no return: 18,000 / 24 = $750/month. At 4% a year it drops to about $715/month.
Typical cases
How much to save each month to reach your goal
Monthly savings needed from zero to reach common goals, earning 4% a year compounded monthly.
| Goal | In 1 year | In 3 years | In 5 years |
|---|---|---|---|
| $5,000 | $409.08 | $130.95 | $75.42 |
| $10,000 | $818.17 | $261.91 | $150.83 |
| $25,000 | $2,045.41 | $654.77 | $377.08 |
| $50,000 | $4,090.83 | $1,309.53 | $754.16 |
Save or share this table as an image Common questions
Frequently asked questions
How do I figure out how much to save each month?
With no return, divide what you still need by the months: (goal − saved) / months. With a return, the calculator counts the interest your savings and each deposit earn, so the monthly amount drops a little.
How is this different from the compound interest calculator?
Here you start from the goal and get the monthly deposit; in the compound interest calculator you start from the deposit and get the final balance. It is the same math, done in reverse.
How much do I need to save for a down payment?
It depends on the share of the price your lender requires. A 10% down payment on a $400,000 home is $40,000: about $667 a month for 5 years with no return. Closing costs come on top.
What mistakes are common when planning savings?
Forgetting inflation and counting on a high return over a short term. With 4% annual inflation, what costs $20,000 today would cost about $29,605 in 10 years.
What share of my income should I save?
A common rule of thumb is 50/30/20: 50% for needs, 30% for wants and 20% for savings. It is only a guide: adjust it to your income and your fixed costs.
Where should I keep money for a short-term goal?
For goals under 2 or 3 years, people often use low-risk options such as a savings account, a certificate of deposit or Treasury bills. Compare their yield and terms before you choose. This is not financial advice.
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