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Save $5,000 in 5 Years
This page shows the monthly deposit needed to save $5,000 in 5 years. The starting interest rate is 4 percent a year and you can change it.
The monthly amount is $75.42. Your deposits reach $4,525 and interest supplies the rest.
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 60 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 60.
Worked example
Aim for $5,000 within 5 years. At 4 percent, a month-by-month deposit of $75.42 gets there. Your deposits add up to $4,525.
Of the $5,000 goal, $475 comes from interest. A zero rate would push the deposit to $83.33.
Questions about this calculator
How long would $5,000 take if you deposited only $57 a month?
About 6 years 6 months. At $75.42 a month the goal takes 5 years.
What would saving $5,000 in 5 years take with no interest at all?
Simply the goal divided by 60 months, which is $83.33 a month. Interest at 4 percent trims that by $7.92.
What if you gave yourself one more year than 5 to reach $5,000?
Over 6 years the monthly deposit falls to $61.56. That is $13.86 less each month than over 5 years.
What if you wanted $5,000 one year sooner than 5 years?
Over 4 years the deposit rises to $96.23. That is $20.81 more each month than over 5 years.
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This page is for education only and is not financial or tax advice.