Savings Goal Calculator
Find out how much to save each month to reach your goal.
Illustration only. Interest rates change, and this assumes a fixed rate with interest added monthly. It is not financial advice.
| Time to goal | Save each month |
|---|---|
| 1 year | $1,551 |
| 2 years | $758 |
| 3 years | $494 |
| 5 years | $283 |
| 10 years | $126 |
Frequently asked questions
How do I work out how much to save each month?
Take your goal, subtract what you already have (plus the interest it will earn), and divide by the number of months, adjusting for interest on the regular deposits. This calculator does that with the future value of an annuity formula, so you can just enter your goal, timeframe and interest rate.
How much do I need to save each month to reach $20,000 in 3 years?
Starting with $1,000 and earning 4% interest, you would need to save about $494 a month for 3 years. Without any interest you would need about $528 a month.
Does the interest rate make much difference?
On shorter goals, not much. Most of a three-year goal is your own deposits. On goals of ten years or more, interest does more of the work, so a higher rate can cut your monthly saving a lot.
What if I cannot afford the monthly amount?
You can extend the timeline, reduce the goal, or start with a larger lump sum. Try a few different timeframes in the calculator and see how each changes the monthly amount.
Where should I keep money I am saving for a goal?
For goals within a few years, most people use insured savings accounts or similar low-risk options so the money is there when they need it. For longer-term goals, other options exist but carry more risk, so consider speaking to a qualified adviser.
How long will it take to save $10,000?
It depends on how much you can save each month. At 4% interest starting from nothing, saving about $401 a month takes 2 years, about $262 a month takes 3 years, and about $151 a month takes 5 years.
How much should I save each month for a $50,000 goal?
Over 10 years at 4% interest, starting from nothing, you would need about $340 a month. Over 5 years it is about $754 a month. Use the calculator for your own timeline and rate.
Does starting with some money already saved help a lot?
Yes. For a $20,000 goal in 5 years at 4%, starting with $5,000 cuts the monthly amount from $302 to $210, because your starting money also earns interest.
About this tool
This savings goal calculator works out the regular monthly amount you need to reach a target by a chosen date. It includes interest earned on the money you have already saved and on each monthly deposit, using the future value of an annuity formula.
Worked example
Suppose you want $10,000 in 2 years and have nothing saved yet, in an account paying 4% a year with interest added monthly. The monthly rate is 4% ÷ 12 and there are 24 deposits. The calculator solves for the deposit that grows to exactly $10,000, which comes to about $401 a month (roughly $93 a week).
You would pay in $9,622 in total, and the remaining $378 would come from interest. Without any interest you would need $417 a month, so on a short goal like this the interest rate makes only a small difference.
How much to save for common goals
Here is the monthly amount needed for a range of goals and timelines, starting from nothing at 4% interest:
| Goal | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| $5,000 | $409 | $200 | $131 | $75 |
| $10,000 | $818 | $401 | $262 | $151 |
| $25,000 | $2,045 | $1,002 | $655 | $377 |
| $50,000 | $4,091 | $2,005 | $1,310 | $754 |
How the interest rate changes the monthly amount
Interest matters more the longer you save. For a $50,000 goal over 10 years, starting from nothing:
| Interest rate | Save each month | Total you pay in | Interest earned |
|---|---|---|---|
| 0% | $417 | $50,000 | $0 |
| 2% | $377 | $45,208 | $4,792 |
| 4% | $340 | $40,747 | $9,253 |
| 6% | $305 | $36,612 | $13,388 |
At 0% every dollar comes from your own deposits. At higher rates the interest covers a growing share, so the monthly amount you need falls.
How a head start helps
Money you already have keeps earning interest, so it reduces the monthly amount by more than its face value over the term. For a $20,000 goal in 5 years at 4%:
| Saved already | Save each month | Save each week (approx.) |
|---|---|---|
| $0 | $302 | $70 |
| $2,000 | $265 | $61 |
| $5,000 | $210 | $48 |
| $10,000 | $117 | $27 |
Tips for reaching your goal
- Automate the deposit. Setting up a transfer on payday makes saving the default instead of a decision.
- Match the account to the timeline. For goals within a few years, many people prefer insured savings accounts or similar low-risk options, since the money has to be there on a set date.
- Use a realistic rate. Savings rates change, so try the calculator at a lower rate as well to see how much cushion you have.
- Review once or twice a year. If you fall behind, extending the timeline by a few months often lowers the monthly amount more than you would expect.
This calculator assumes a fixed rate, steady monthly deposits and no taxes or fees. It is an illustration, not financial advice.