Savings goal calculator

Enter your goal, what you have saved and the interest rate. The calculator finds the monthly deposit that gets you there in the years you choose, and how long a deposit of your own takes.

The balance that you want to reach.
What you have saved already. Leave it empty for none.
The yearly rate of your account. A rate of 0 saves with no interest.
Gives the deposit that reaches the goal in this time. A part of a year works: 2.5 is 30 months. Leave it empty to skip.
Gives the time that this deposit takes, made at the end of each month. Leave it empty to skip.
Monthly deposit needed
$340.25
Total you deposit
$20,414.80
Interest earned
$2,585.20
Time with your deposit
59 months (4 years and 11 months)
Balance at that time
$25,212.59
Interest earned by then
$2,562.59

This answer is for the example values in the boxes above. Goal $25,000, $2,000 to start, 4% a year, 60 months (5 years), $350 a month. Change the boxes to see your own answer.

The interest is added monthly and each deposit is made at the end of a month. The last month is counted whole. Taxes and fees are not in it.

How it works

The calculator treats your savings like an account. The interest is added every month at one twelfth of the yearly rate, and each deposit is made at the end of a month. It starts from what you have saved.

To find the deposit, it solves for the monthly amount that grows your starting amount and the deposits to the goal in the years that you give. To find the time, it counts the months until the balance first reaches the goal with the deposit that you give. The last month is counted whole. The two answers do not depend on each other: leave the years or the deposit empty to see only the other.

A worked example

You want $25,000 in 5 years, you have $2,000 and the account pays 4 percent. The deposit is $340.25 a month. Over the 60 months you deposit $20,414.80, and the interest adds $2,585.20.

The tool opens on this example. If you would rather deposit $350 a month, the goal is reached in 59 months, which is 4 years and 11 months, with a balance of $25,212.59.

Deposits and interest

On a goal of a few years, the deposit does most of the work. The account above earns $2,585.20 of the $25,000. Interest helps more over a longer time, which is what the compound interest calculator shows.

What it leaves out

Taxes and fees are not in it, and the rate is the same for the whole time. A real account may change its rate. If your goal is a price that rises with inflation, the inflation calculator shows what it may cost by then.

Questions

How much do I need to save each month to reach a goal?

Take the goal, take off what your starting amount grows to, and divide what is left by the growth of a deposit of $1 a month. The calculator does it: $25,000 in 5 years from $2,000 at 4% takes $340.25 a month.

How long will it take to save a goal?

It depends on the deposit and the rate. From $2,000 at 4% with $350 a month, $25,000 takes 59 months, which is 4 years and 11 months.

How much does interest matter on a short goal?

Less than people expect. The same $25,000 in 5 years with no interest takes $383.33 a month, and at 4% it takes $340.25, about $43 less.

What rate should I use for my savings account?

The yearly rate of your account. A savings account quotes its rate and may change it, so try a lower rate too. Enter 0 for a jar at home or an account that pays nothing.

Are taxes on the interest included?

No. Taxes and fees on the account are not in it.

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