Savings Goal Calculator
Find out how much to save each month to hit a target amount by a target date.
What this calculator does
Works backward from a target amount and date to tell you the fixed monthly contribution needed, factoring in interest earned along the way on both your starting balance and your ongoing contributions.
Who this is for
Anyone saving toward a specific goal with a deadline — a house down payment, wedding, car, or emergency fund — who wants a concrete monthly number to work toward rather than a vague "save more" plan.
How this calculator works
Works backward from your target: it finds the fixed monthly contribution that, combined with your starting balance and interest earned along the way, reaches your goal exactly on schedule.
Worked example
A $20,000 goal, $2,000 already saved, over 24 months at 4% annual interest: the calculator solves for the monthly contribution that grows $2,000 plus 24 monthly deposits (each earning a bit of interest along the way) to exactly $20,000. Roughly, that works out to about $690/month — meaningfully less than the naive $18,000 ÷ 24 = $750/month you'd get by ignoring interest entirely, since compounding does some of the work for you.
How your goal gets funded
Run the calculator above to see how much of your goal comes from your own contributions vs. interest earned.
Common mistakes
- Ignoring interest entirely. Even a modest savings rate reduces the monthly amount you need to contribute — skipping this input overstates how much you actually need to save.
- Setting an unrealistic timeline. If the required monthly contribution comes back higher than you can actually save, it's more useful to extend the timeline than to assume you'll find the money somehow.
- Not revisiting the goal periodically. Life circumstances change — treat this as a starting plan to check in on every few months, not a one-time calculation.
- Using a checking account rate instead of a high-yield savings rate. The interest rate you enter meaningfully changes the required monthly contribution — using a realistic high-yield rate (rather than a near-zero checking account rate) gives a more useful, achievable target.
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Frequently Asked Questions
Does this account for compounding on my monthly contributions, not just the starting balance?
Yes — each monthly contribution earns interest for the remaining months until your goal date, not just the initial lump sum. This is why the required monthly amount is lower than a simple "goal minus current savings, divided by months" calculation would suggest.
What if the required monthly contribution is more than I can afford?
Try extending your timeline in the calculator — a longer horizon lowers the required monthly contribution, and gives interest more time to do part of the work for you.
Does this account for taxes on interest earned?
No, this shows gross growth. Interest on standard savings accounts is typically taxable income, so your actual after-tax growth may be slightly lower depending on your tax situation.
Should I use a high-yield savings account for this?
Generally yes for near-term goals — a high-yield account meaningfully reduces the monthly amount you need to save compared to a standard low-interest account. Compare current rates on the Bank Interest Rates page.