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Save $5,000 in 3 Years
Planning to have $5,000 in 3 years? The page shows the monthly deposit at 4 percent and the interest you earn along the way.
The deposit comes to $130.95 a month. Interest covers $286 of the goal.
How the deposit is worked out
First find how much an empty account will grow to on its own over 36 months. Subtract that from the goal of $5,000 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 36.
Worked example
A deposit of $130.95 each month for 36 months grows to $5,000 at 4 percent.
Of the $5,000 goal, $286 comes from interest. A zero rate would push the deposit to $138.89.
Questions about this calculator
What if the rate on a 3-year $5,000 goal were 2 percent instead of 4 percent?
The monthly deposit for $5,000 would be $134.88 instead of $130.95. 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 3 years?
The deposit would fall from $130.95 to $116.19. That is $14.76 less each month.
What would the deposit be for half the goal, $2,500, in 3 years?
$65.48 a month at 4 percent.
How long would $5,000 take if you deposited only $98 a month?
About 4 years. At $130.95 a month the goal takes 3 years.
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This page is for education only and is not financial or tax advice.