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Save $50,000 in 5 Years
This page shows the monthly deposit needed to save $50,000 in 5 years. The starting interest rate is 4 percent a year and you can change it.
The deposit comes to $754.16 a month. Interest covers $4,750 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 60 to get the growth factor. The deposit needed is the gap to $50,000 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
At 4 percent you need $754.16 a month to hit $50,000 in 5 years. That is $45,250 of your own money.
Of the $50,000 goal, $4,750 comes from interest. A zero rate would push the deposit to $833.33.
Questions about this calculator
What if you wanted $50,000 one year sooner than 5 years?
Over 4 years the deposit rises to $962.29. That is $208.13 more each month than over 5 years.
What if the rate on a 5-year $50,000 goal were 2 percent instead of 4 percent?
The monthly deposit for $50,000 would be $793.05 instead of $754.16. A lower rate means you carry more of the goal yourself.
How much would a $500 head start lower the deposit for $50,000 in 5 years?
The deposit would fall from $754.16 to $744.95. That is $9.21 less each month.
What would the deposit be for half the goal, $25,000, in 5 years?
$377.08 a month at 4 percent.
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This page is for education only and is not financial or tax advice.