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Save $2,500 in 5 Years
This page shows the monthly deposit needed to save $2,500 in 5 years. The starting interest rate is 4 percent a year and you can change it.
The monthly amount is $37.71. Your deposits reach $2,262 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 60 months. Subtract that from the goal of $2,500 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 60.
Worked example
To reach $2,500 in 5 years at 4 percent you would deposit $37.71 each month. Over 60 months that is $2,262 of your own money.
Interest covers $238 of the goal. If your account paid nothing the deposit would have to rise to $41.67 a month.
Questions about this calculator
What if you gave yourself one more year than 5 to reach $2,500?
Over 6 years the monthly deposit falls to $30.78. That is $6.93 less each month than over 5 years.
What if you wanted $2,500 one year sooner than 5 years?
Over 4 years the deposit rises to $48.11. That is $10.41 more each month than over 5 years.
What if the rate on a 5-year $2,500 goal were 2 percent instead of 4 percent?
The monthly deposit for $2,500 would be $39.65 instead of $37.71. A lower rate means you carry more of the goal yourself.
How much would a $500 head start lower the deposit for $2,500 in 5 years?
The deposit would fall from $37.71 to $28.50. That is $9.21 less each month.
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This page is for education only and is not financial or tax advice.