How to use the savings goal calculator
Choose what you want to find out:
- How much per month? Enter your goal, what you've already saved, and the number of months you have. You'll see the monthly deposit needed.
- How long will it take? Enter how much you can save each month to see when you'll reach your goal.
Add your savings account's interest rate (APY) to include the interest your money earns along the way.
The formula
With a monthly interest rate r, current savings S, goal G and n months, the monthly deposit needed is:
Deposit = (G − S × (1 + r)ⁿ) × r ÷ ((1 + r)ⁿ − 1)
With no interest, it's simply (G − S) ÷ n.
Example: to reach $20,000 in 3 years with $2,000 already saved at 4% APY, you need to save about $465 a month. Interest contributes roughly $1,270 of the total.
Common savings goals
| Goal | Typical target |
|---|---|
| Emergency fund | 3–6 months of essential expenses |
| House down payment | 3%–20% of the home price, plus 2%–5% for closing costs |
| Car | 20% down, or the full price to avoid a loan |
| Wedding | Varies widely; set a budget first |
| Vacation | Travel + lodging + daily spending × days |
Tips to reach your goal faster
- Automate it: set up an automatic transfer on payday so saving happens before spending.
- Use a separate account named after the goal. It's easier to resist dipping into it.
- Choose a high-yield savings account instead of a regular one. The difference in rates can be large.
- Save windfalls: tax refunds, bonuses and gifts can shave months off your timeline.
Frequently asked questions
How much should I save each month?
A popular guideline is the 50/30/20 rule: 50% of take-home pay for needs, 30% for wants and 20% for savings and extra debt payments. Your exact amount depends on your goals — this calculator tells you what a specific goal requires.
Where should I keep money for a savings goal?
For goals within a few years, such as an emergency fund, car or house down payment, a high-yield savings account or CDs keep your money safe and accessible while earning interest. For goals more than five years away, investing may grow faster but carries more risk.
How big should an emergency fund be?
Most experts suggest three to six months of essential expenses. If your income is irregular or you're the only earner in your household, aim for the higher end.
Does interest make a big difference for short goals?
Not much. Over one to three years, interest adds a small amount — most of the goal comes from your deposits. Interest matters far more over long periods. Use a realistic rate, such as your savings account's APY.