Savings Goal Calculator: How Much to Save a Month
Enter your goal, what you have saved and how long you have. See how much to put away each month, and how much interest could help.
What we noticed
Year by year
How this calculator works
We work backwards from your goal. First we see how much your current savings will grow on their own at your yearly rate. Then we work out the monthly deposit that closes the rest of the gap.
Deposits go in at the end of each month, and interest is added monthly using your yearly rate (APY). If your savings already grow past the goal, you need nothing more.
Savings rates can change, and interest may be taxable. This uses one steady rate, so treat the answer as a plan, not a guarantee.
Ideas for common goals
| Emergency fund | Many people aim for 3 to 6 months of costs |
|---|---|
| House down payment | Often 5% to 20% of the price |
| Short goals | Under 5 years: keep it in a savings account |
Sources: Investor.gov: Compound interest
Frequently asked questions
How do I work out what to save each month?
Take your goal, subtract what your current savings will grow to, and divide the rest over the months you have, allowing for interest. The calculator does this for you.
What is APY?
Annual percentage yield is the yearly return on a savings account, including the effect of interest earning interest.
Does interest make a big difference?
For short goals, only a little. For long goals, it can do a lot of the work. The calculator shows how much of your goal comes from interest.
Where should I keep savings for a short goal?
People often use an insured savings account for goals within a few years, so the money is not at risk from the stock market.