How this calculator works
In monthly amount mode it solves for the payment that grows your current savings plus deposits to the goal by the deadline, assuming interest is added monthly:
PMT = (Goal − Current × (1 + r/12)n) × (r/12) ÷ ((1 + r/12)n − 1)
In time to goal mode it simulates month by month: grow the balance by the monthly rate, add your deposit, and count the months until you reach the target.
An example
To have $20,000 in 5 years starting from $2,000 at 4%, you would need to save about $265 per month. You would deposit roughly $17,890 in total (including the $2,000 you already have) and interest would cover the remaining $2,110.
Tips for reaching your goal
- Automate it. Schedule the transfer for payday so saving happens before spending does.
- Match the account to the timeline. Money you need within a few years generally belongs somewhere stable, not in assets that can drop right before you need them.
- Build an emergency fund first. A common guideline is three to six months of essential expenses, though the right amount depends on how stable your income is.
- Split big goals. A separate account or label per goal (car repairs, vacation, down payment) keeps one goal from quietly eating another.
Frequently asked questions
Which rate should I use?
Use the current rate of the account where the money will sit. Rates on savings accounts change, so it is safer to plan with a slightly lower number.
Is the goal in future money or today’s money?
Future money: the calculator does not adjust for inflation. If prices for your goal will rise, increase the goal amount.
What if I cannot afford the monthly amount?
Switch to “Time to goal” and enter what you can save. Extending the deadline lowers the monthly amount more than most people expect.
Are taxes on interest included?
No. Interest is usually taxable, so your after-tax result may be a little lower.