Savings Goal Calculator
Savings goal calculator: the monthly deposit you need to reach a target such as an emergency fund or down payment.
Editorial review: Farrow (pseudonym; identity and professional credentials are not disclosed). This page is for educational purposes, not professional advice.
Your inputs
Results update as you type. Nothing you enter leaves your device.
Results
- Total deposited
- $27,149.74
- Interest earned
- $2,850.26
Example with the starting values
These results use the calculator's initial inputs. Change the values above to calculate your own estimate.
Inputs
- Target amount
- 30000 $
- Annual return
- 4 %
- Years
- 5
Results
- Monthly deposit
- $452.50
- Total deposited
- $27,149.74
- Interest earned
- $2,850.26
How does the Savings Goal Calculator work?
A savings goal is a target amount you plan to reach by a set date, such as an emergency fund or a down payment. The monthly deposit is PMT = Goal × r / ((1+r)^n − 1), with monthly rate r = annual return / 12 and n months.
Deposits are made at the end of each month and earn interest until the deadline. With a 0% return, the deposit is simply the goal divided by the months. A higher return or a longer timeline lowers what you must save.
For example, saving $30,000 in 5 years at a steady 4% annual return requires deposits of about $452.50 at each month-end. At 0% return, the same goal requires $500 a month.
Frequently asked questions
How much do I need to save each month to reach my goal?
Divide the goal by the months left, then adjust for interest. To save $30,000 in 5 years at a 4% return, you need about $452 a month, versus $500 with no interest.
What is the formula for a monthly savings goal?
PMT = Goal × r / ((1+r)^n − 1), where r is the monthly rate and n is months. At 0% interest, PMT is simply Goal / n, so $12,000 over 24 months is $500 a month.
How big should my emergency fund be?
Most financial planners suggest 3 to 6 months of essential expenses. If your bills are $3,000 a month, aim for $9,000 to $18,000 in a savings account you can reach quickly.
What return should I assume?
For a high-yield savings account, use the current APY. For stock investments over many years, people often assume 5% to 7% after inflation, but returns are not guaranteed.