Home / Savings goal / $1,000 in 2 years
Save $1,000 in 2 Years
This page shows the monthly deposit needed to save $1,000 in 2 years. The starting interest rate is 4 percent a year and you can change it.
On the starting figures the monthly deposit is $40.09. The deposits total $962.
How the deposit is worked out
The rule is a balance. Money you have now grows for 24 months. Money you deposit grows for fewer months each time. Add the pieces at 0.3333 percent a month and the total must equal $1,000. Solving for the deposit gives the gap times the rate over the growth factor minus one.
Worked example
A deposit of $40.09 each month for 24 months grows to $1,000 at 4 percent.
Of the $1,000 goal, $38 comes from interest. A zero rate would push the deposit to $41.67.
Questions about this calculator
What if the rate on a 2-year $1,000 goal were 2 percent instead of 4 percent?
The monthly deposit for $1,000 would be $40.87 instead of $40.09. A lower rate means you carry more of the goal yourself.
How much would a $500 head start lower the deposit for $1,000 in 2 years?
The deposit would fall from $40.09 to $18.38. That is $21.71 less each month.
What would the deposit be for half the goal, $500, in 2 years?
$20.05 a month at 4 percent.
How long would $1,000 take if you deposited only $30 a month?
About 2 years 8 months. At $40.09 a month the goal takes 2 years.
Related calculators
This page is for education only and is not financial or tax advice.