Savings Goal Calculator
A savings goal calculator works backward from a target. You say how much you want, how long you have and what you already have set aside. It tells you the monthly deposit that gets you there.
The page starts with a goal of $20,000, $2,500 already saved, 4 years and 3.5 percent interest.
How the deposit is worked out
Run the savings growth formula backward. Instead of asking what a deposit grows into, ask which deposit grows into $20,000 over 48 months. At a monthly rate of 0.2917 percent the answer is the gap to the goal times the rate, divided by the growth factor minus one.
Worked example
At 3.5 percent you need $332.90 a month to hit $20,000 in 4 years. That is $15,979 of your own money.
The gap between $364.58 and $332.90 a month is the work interest does for you.
Questions about this calculator
What does the calculator assume about interest?
That the account pays a steady yearly rate that is applied monthly. Real savings rates can change, so treat the deposit as an estimate and test a lower rate too.
What would the deposit be without interest?
The goal less your savings, divided by 48 months, which is $364.58 a month. At 3.5 percent you need $332.90 instead.
Can I use this for a goal with no end date?
Not directly. The calculator needs a number of years. Pick a date that feels workable and adjust it until the monthly deposit fits your budget.
Should I save for the goal or pay down debt first?
The calculator cannot weigh this. Your $332.90 a month earns about $1,521 of interest over 4 years at 3.5 percent. Debt that charges more than your savings earn is often the better place for spare money. Compare the rates before you decide.
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This page is for education only and is not financial or tax advice.