How to use this savings goal calculator
- Savings goal: the amount you want to have, such as an emergency fund, a home deposit or a car.
- Current savings: what you've already put aside for this goal.
- Annual interest rate: the rate your savings account pays. Use 0 if the money won't earn interest.
- Target date: the month you want to reach the goal.
You'll see the amount to save each month, the total you'll deposit, how much interest you'll earn, and what your current savings would grow to on their own.
How the monthly saving is calculated
Your current savings grow with interest until the target date. Whatever they don't cover is the shortfall, and the calculator finds the equal monthly deposit that closes it, with each deposit also earning interest from the month after it's made.
Worked example
Interest covers about $3,036 of the $25,000 gap, so you need to deposit about $21,964 rather than the full $25,000.
How your deadline changes the amount
The same $30,000 goal with $5,000 saved and a 4.5% rate needs very different monthly amounts depending on the deadline:
| Time to goal | Monthly saving |
|---|---|
| 36 months | $631.17 |
| 48 months | $457.59 |
| 60 months | $353.58 |
Adding one year to a three-year plan lowers the monthly amount by about $174. If the required amount doesn't fit your budget, a later target date is often the easiest lever, followed by a smaller first milestone.
Tips to reach your goal faster
- Automate it. Schedule a transfer for the day after payday so the money moves before you can spend it.
- Keep the goal separate. A dedicated account makes progress visible and reduces the temptation to dip in.
- Earn a competitive rate. Compare savings accounts by APY; a higher rate means you deposit less to hit the same goal.
- Use windfalls. Putting part of a tax refund, bonus or gift toward the goal can cut months off the timeline.
- Break big goals into milestones. Reaching $5,000 first, then $10,000, keeps motivation up on long plans.
- Recalculate regularly. Update your balance and rate every few months to see whether you're ahead or behind.
Setting the right goal amount
A goal is easier to reach when the number is specific and the reason is clear. A few common examples:
- Emergency fund. Add up your essential monthly costs (housing, food, utilities, transport, insurance and minimum debt payments) and multiply by the number of months you want covered. Many financial planners suggest several months of essential expenses.
- Home deposit. Start from the price range you're considering and the down payment percentage your lender requires, then add an estimate for closing costs.
- Car. Decide whether you're paying cash or making a down payment on a loan; the car loan calculator shows how a bigger down payment lowers the monthly cost.
- Travel or a big purchase. Get a current quote and add a margin for price changes.
If you're saving for more than one goal, run the calculator for each and add up the monthly amounts to see whether the total fits your budget. If it doesn't, decide which goal comes first instead of spreading too little across all of them.
What this calculator doesn't include
The result assumes a constant interest rate, monthly compounding and an equal deposit at the end of every month until the target month. It does not include taxes on interest, account fees, withdrawals or changes to the savings rate. Investments that can fall in value don't behave like a fixed rate, so for money you'll need by a specific date, the calculator works best with savings products that pay a stated rate.