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Save $20,000 in 2 Years
Use this page to plan a $20,000 savings goal over 2 years. It assumes 4 percent a year to start and lets you edit every box.
The monthly amount is $801.83. Your deposits reach $19,244 and interest supplies the rest.
How the deposit is worked out
First find how much an empty account will grow to on its own over 24 months. Subtract that from the goal of $20,000 to get the gap. The monthly deposit is the gap times the monthly rate of 0.3333 percent, divided by the growth factor minus one. The growth factor is one plus the monthly rate raised to the power of 24.
Worked example
Aim for $20,000 within 2 years. At 4 percent, a month-by-month deposit of $801.83 gets there. Your deposits add up to $19,244.
The remaining $756 comes from interest. Without interest the deposit would need to be $833.33 a month.
Questions about this calculator
What would saving $20,000 in 2 years take with no interest at all?
Simply the goal divided by 24 months, which is $833.33 a month. Interest at 4 percent trims that by $31.50.
What if you gave yourself one more year than 2 to reach $20,000?
Over 3 years the monthly deposit falls to $523.81. That is $278.02 less each month than over 2 years.
What if you wanted $20,000 one year sooner than 2 years?
Over 1 years the deposit rises to $1,636.33. That is $834.50 more each month than over 2 years.
What if the rate on a 2-year $20,000 goal were 2 percent instead of 4 percent?
The monthly deposit for $20,000 would be $817.47 instead of $801.83. A lower rate means you carry more of the goal yourself.
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This page is for education only and is not financial or tax advice.