Savings Goal Calculator

How it works

Your goal gets funded from three places: the money you’ve already saved (which quietly grows on its own), the deposits you make each month, and the interest both of them earn along the way. This calculator figures out how large your savings will grow by themselves, then finds the exact monthly deposit that fills the remaining gap, assuming deposits at the end of each month with interest compounded monthly:

• M — the monthly deposit you’re solving for
• G — your goal
• P — what you’ve already saved
• i — monthly interest rate (annual rate ÷ 12)
• n — number of months

With the defaults above: $5,000 grows to about $6,105 on its own over 5 years at 4%, leaving $18,895 for your deposits to cover. The monthly amount that gets there, deposits plus the interest they earn, is about $285 a month. Of your $25,000 goal, roughly $2,900 ends up being interest you never had to save.

✓ Every result is checked against independent reference math. See how we test the calculators →

Three ways to hit your goal sooner

• Start now, not at a round number. Time does more work than amount. Waiting a year on the default example pushes the monthly cost from $285 to about $365, a 28% penalty for standing still.
• Automate it on payday. A transfer that happens before you can spend the money succeeds far more often than one that waits for month-end leftovers. Treat it like a bill.
• Match the account to the timeline. Money needed within a couple of years belongs somewhere safe, like a high-yield savings account. For goals 5+ years out, many people accept market ups and downs in exchange for higher average growth. Even 1 extra percent compounds meaningfully.

What the monthly figure assumes

The result is only as reliable as the assumptions behind it, and a few real-world details sit outside the formula. Keeping them in mind stops you from trusting the number more than it deserves.

• It ignores inflation. The goal is in today's dollars unless you set the target at a future price. For a goal several years out, nudge the target up or use a slightly lower return so the plan keeps its buying power.
• It assumes you never miss a month. Every skipped deposit has to be made up later, usually at a higher monthly rate. Automating the transfer on payday is the simplest way to keep the plan on track.
• Returns are not guaranteed. The rate is an average, not a promise. Money invested for growth swings up and down along the way, so leave a margin and revisit the plan every year rather than assuming a smooth ride.

Where to keep your goal money

The right home for the money depends almost entirely on how soon you need it, because the trade-off between growth and safety changes with the timeline.

• Under two years: keep it safe and liquid. A high-yield savings account or a short CD earns a little interest without risking the balance right before you need it.
• Two to five years: a middle ground. Some people stay in cash for certainty, others add a conservative mix, accepting small swings for a bit more growth.
• Five years or more: time smooths out market ups and downs, so many savers invest for higher expected returns and let compounding carry more of the load.

Whatever you choose, keep goal money in its own account, separate from everyday spending. Money you do not see is money you do not accidentally spend, and a dedicated account makes the progress feel real.