Savings Goal Calculator
Whether you're building an emergency fund, saving for a down payment, or planning a major purchase, this calculator tells you exactly how much to save each month and when you'll reach your goal. It accounts for compound interest, so your money works harder as you save.
The key insight: even modest returns make a significant difference over time. At 5% APY, $500/month grows to $34,000 in 5 years — $4,000 of which is free money from interest. This calculator shows you the math for any goal, any timeline, and any return rate.
To save $25,000 from $5,000, you need $500/month for 3y 0m. That's a $20,000 gap — $18,000 in contributions + $2,184 in interest earned.
Your savings goal
Emergency fund, down payment, vacation...
What you already have saved
How much you can save each month
Savings account: ~4-5%. Investments: ~7%.
Savings gap
$20,000
$25,000 goal - $5,000 saved
Your savings plan
Time to reach your goal
3y 0m
36 monthly payments of $500
Total Contributions
$18,000
Money you put in
Interest Earned
$2,184
Free money from returns
Final Balance
$25,000
Goal reached!
Monthly savings needed by timeframe
How much to save each month to reach your goal faster
Year-by-year progress
| Year | Balance | Contributions | Interest |
|---|---|---|---|
| 1 | $11,395 | $11,000 | $395 |
| 2 | $18,118 | $17,000 | $1,118 |
| 3 | $25,184 | $23,000 | $2,184 |
How to use this calculator
Savings goal — Your target amount. Common goals: emergency fund (3–6 months expenses), down payment (5–20% of home price), vacation ($2K–$5K), car ($10K–$30K). Be specific — a clear target makes it easier to stay motivated.
Current savings — What you've already saved toward this goal. Include any accounts earmarked for this purpose. Starting with $5K instead of $0 can shave months off your timeline.
Monthly contribution — How much you can save each month. The biggest lever for reaching your goal faster. Even $50 extra per month compounds significantly over time.
Annual return — Expected annual interest or investment return. High-yield savings: ~4–5%. CDs: ~4–5%. Conservative investments: ~5–7%. Stock-heavy portfolio: ~7–10% (but volatile). Use lower rates for short-term goals.
Real-world examples
Emergency fund: $15K from $0
At $400/month in a 5% HYSA: reached in ~3 years. Total contributed: $14,400, interest earned: ~$600. Without interest (0%): 37.5 months. Compound interest saves you ~3 months of saving. Automate this — set up automatic transfers on payday.
House down payment: $60K in 5 years
Starting from $10K, at 5% return: need ~$770/month. Total contributed: ~$46K + $10K start, interest earned: ~$8K. That $8K in free interest is like getting 1.5 months of contributions for free. In a brokerage at 7%: only ~$730/month needed.
Wedding fund: $25K in 2 years
Starting from $0, at 4.5% return: need ~$1,020/month. Interest earned: ~$1,500. Short timeline means interest helps less (only ~6% of total), but every bit counts. Consider a 0% intro APR card for planned wedding expenses to extend your timeline.
Formula & Methodology
Future Value of Savings formula
- PV = Present value (current savings)
- PMT = Monthly contribution
- r = Monthly interest rate (annual rate / 12)
- n = Number of months
Solving for monthly contribution
This rearranged formula calculates the exact monthly payment needed to reach your goal in a specific timeframe, accounting for compound interest on both existing savings and future contributions.
Assumptions & limitations
- Returns are assumed constant. Real investment returns fluctuate significantly.
- Contributions are made at the end of each month. Actual timing may vary.
- Does not account for taxes on interest or investment gains.
- For short-term goals (under 3 years), use savings account rates, not stock market returns.