Savings Goal Calculator
Find out how much to save each month to reach a goal by a certain date, or how long it will take at the amount you can save now. The interest your savings earn is included.
This calculator assumes your APY stays the same, you deposit at the end of each month and you don't withdraw anything. Taxes and fees aren't included, so results are estimates. See our terms of use.
How to use this calculator
First, choose what you want to find out:
- How much to save each month: enter your savings goal, what you've already saved and when you want to reach the goal. You'll get the monthly deposit that gets you there.
- How long to reach my goal: enter the amount you can save each month instead. You'll see how long it takes and the month you'd reach your goal.
For the interest rate, enter the APY (annual percentage yield) your savings account pays. If the money will sit in checking or in cash, enter 0. For a goal less than a year away, switch "Time in" to months. Open the year-by-year table to watch your balance grow.
How the savings goal formula works
Banks quote savings rates as an APY, which already includes compounding. The calculator converts the APY to an equivalent monthly rate, so a balance left alone for a year grows by exactly the APY. Each deposit is added at the end of the month. The monthly deposit you need is:
D = [G − P × (1 + i)n] × i ÷ [(1 + i)n − 1]
Here G is your goal, P is what you have now, n is the number of months and i is the monthly rate, (1 + APY)1/12 − 1. The calculator rounds D up to the next cent, so the amount shown is always enough. When you choose "How long to reach my goal," it adds up your balance month by month until it reaches your goal.
Example: you want $20,000 in 3 years, you have $2,000, and your account pays 4% APY. The monthly rate is about 0.327%. Left alone, your $2,000 would grow to $2,249.73 in 36 months, so your deposits and their interest need to cover the other $17,750.27. That takes $465.39 a month. Over three years you'd deposit $16,754, and interest would add $1,246.
Why your deposits matter more than your rate
Over a few years, interest helps, but most of your goal comes from your own deposits. Here's the same $20,000 goal, starting from $2,000 with 3 years to go:
| APY | Monthly deposit needed | Interest earned |
|---|---|---|
| 0% | $500.00 | $0 |
| 2% | $482.40 | $634 |
| 4% | $465.39 | $1,246 |
| 5% | $457.10 | $1,544 |
Going from 4% to 5% APY lowers the monthly deposit by just $8.29. Giving yourself a fourth year lowers it by $125.01, to $340.38. For a goal a few years away, your deposits and your timeline matter far more than the rate. A better rate still helps, but it isn't worth putting money you'll need soon at risk.
Interest does more of the work over long periods. Saving for the same $20,000 over 20 years at 4%, interest would supply $7,699, more than a third of the goal. For long-term goals, try our compound interest calculator or retirement calculator.
How to build a savings plan you'll stick with
Make the goal specific
"Save more" is hard to act on. "Save $6,000 for a car down payment by next June" tells you exactly what to do. The CFPB notes that having a specific goal can help you stay motivated. Write down what you're saving for, what it will cost and when you'll need the money. Then use the calculator to turn that into a monthly amount. If the deposit is more than you can manage, try a later date or a smaller goal. Saving for a car? Our auto loan calculator shows how a bigger down payment lowers your payment.
Automate your deposits
Saving is easier when you don't have to decide every month. Set up an automatic transfer from checking to savings for the day after payday. If your employer offers it, split your direct deposit so part of each paycheck goes straight to savings. You can also split a federal tax refund among up to three accounts, using your tax software or IRS Form 8888. Keep an eye on your checking balance so a transfer never causes an overdraft.
Use sinking funds for costs you can see coming
A sinking fund is money you set aside each month for a cost you know is coming, such as car insurance, holiday gifts, car repairs or a vacation. Instead of one big hit to your budget, you pay yourself ahead of time in small amounts. For example, a $1,200 insurance bill due in 12 months takes $100.00 a month at 0%, or $98.22 a month at 4% APY. Keeping each fund in its own account, or tracking it separately, makes it less likely you'll spend the money by accident.
How much should you keep in an emergency fund?
An emergency fund lets you handle a job loss, a car repair or a medical bill without new debt. There's no single right amount: the CFPB says it depends on your situation. A common rule of thumb is three to six months of essential expenses, and the FDIC notes that financial experts generally recommend at least six months. In the Federal Reserve's survey of U.S. households for 2025, 55% of adults said they had set aside money for three months of expenses in an emergency savings or "rainy day" fund.
To set your target, add up the bills you must pay each month: housing, utilities, food, insurance, transportation and minimum debt payments. If that comes to $3,000, three months is $9,000 and six months is $18,000. Starting from $1,000 and saving $400 a month at 4% APY, you'd reach $9,000 in 1 year 8 months. Consider the higher end if your income changes from month to month or you're the only earner in your household. If that feels out of reach, start with a smaller first goal, such as the cost of a car repair, and build from there.
Where to keep money you'll need soon
Money for a goal that's months or a few years away should be safe and easy to reach. That usually means keeping it out of the stock market, where prices can fall right when you need to sell. Common choices:
| Option | Getting your money | Rate | Protection |
|---|---|---|---|
| High-yield savings account | Any time | Can change | FDIC or NCUA insurance |
| Money market account | Any time; may have checks | Can change | FDIC or NCUA insurance |
| Certificate of deposit (CD) | At maturity; penalty if early | Set when you open it | FDIC or NCUA insurance |
| Treasury bills | At maturity, or sell early | Set when you buy | U.S. government backing |
- Deposit insurance: the FDIC insures deposits at insured banks up to $250,000 per depositor, per bank, for each account ownership category. Credit union accounts are insured by the NCUA to the same $250,000 standard.
- Money market account vs. money market fund: a money market account is a bank or credit union deposit, so it's insured. A money market fund is an investment sold by brokerages and fund companies. It isn't FDIC or NCUA insured, and you could lose money.
- CDs pay an agreed rate on your money for a set term. Federal law sets a minimum penalty for early withdrawals but no maximum, so read the terms before you open one. Our CD calculator shows what a CD would earn.
- Treasury bills are short-term securities sold by the U.S. Treasury in terms of 4, 6, 8, 13, 17, 26 and 52 weeks, starting at $100. You can buy them through TreasuryDirect, the Treasury's own website, or through a bank or broker. Their interest is taxed federally but not by states or localities.
- Savings apps that aren't banks: FDIC insurance only covers you if the insured bank holding your money fails, and only when certain conditions are met. Find out which bank actually holds your money.
The Federal Reserve dropped its six-per-month limit on savings withdrawals in 2020. Banks can still set their own limits or fees, so check your account terms.
Frequently asked questions
What APY should I enter?
Use the APY your account pays now, shown on the bank's website or in your account disclosures. Federal rules require banks to show the APY when they advertise a savings rate, which makes accounts easy to compare. Savings rates can change, so also try a lower rate to see how much your plan depends on it.
Is the interest I earn taxable?
Generally, yes. Interest from savings accounts, money market accounts and CDs is taxable income. Banks send Form 1099-INT when they pay you $10 or more in interest. You have to report all taxable interest, even without a form. The calculator doesn't subtract taxes, so your real balance may be a little lower.
Why do I end up with a little more than my goal?
When you choose "How long to reach my goal," the calculator assumes you deposit the full amount every month. So in the month you pass your goal, you usually end up a little over. In the default example, $500 a month gets you to $20,186 in 2 years 10 months.
What if I deposit at the start of each month?
Each deposit would earn one extra month of interest, so you'd need slightly less. In the $20,000 example, you'd need $463.87 a month instead of $465.39. Over a short period the difference is small, so the end-of-month answer is a safe target.
Should I invest money for a short-term goal?
Stock prices can drop sharply in a single year, which is a real risk for money you'll need soon. A common approach is to keep short-term savings in insured accounts or Treasury bills and invest only money you won't need for many years. For a big decision, consider talking with a qualified financial professional.
Last reviewed: October 2026