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Save $5,000 in 10 Years
This page shows the monthly deposit needed to save $5,000 in 10 years. The starting interest rate is 4 percent a year and you can change it.
The deposit comes to $33.96 a month. Interest covers $925 of the goal.
How the deposit is worked out
With a 4 percent yearly rate the monthly rate is 0.3333 percent. Raise one plus that rate to the power of 120 to get the growth factor. The deposit needed is the gap to $5,000 times the monthly rate divided by that factor minus one. If the rate were zero the deposit would simply be the gap divided by 120.
Worked example
Reaching $5,000 in 10 years at 4 percent takes $33.96 a month. Your deposits total $4,075.
The remaining $925 comes from interest. Without interest the deposit would need to be $41.67 a month.
Questions about this calculator
What if the rate on a 10-year $5,000 goal were 2 percent instead of 4 percent?
The monthly deposit for $5,000 would be $37.67 instead of $33.96. A lower rate means you carry more of the goal yourself.
How much would a $500 head start lower the deposit for $5,000 in 10 years?
The deposit would fall from $33.96 to $28.89. That is $5.06 less each month.
What would the deposit be for half the goal, $2,500, in 10 years?
$16.98 a month at 4 percent.
How long would $5,000 take if you deposited only $25 a month?
About 12 years 10 months. At $33.96 a month the goal takes 10 years.
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This page is for education only and is not financial or tax advice.