Savings goal calculator
Got a number in mind — a deposit, an emergency fund, a trip? Tell the calculator the goal and the deadline and it works out the monthly amount, including what your savings account's interest does for you.
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The formula behind the monthly amount
The calculator treats your savings as a pot that earns interest every month while you add a fixed amount at the end of each month. The future value of that pot is:
FV = S × (1 + i)n + P × ((1 + i)n − 1) ÷ i
where S is what you've already saved, P is the monthly deposit, n is the number of months, and i is the monthly rate (worked out from your APY so the annual yield matches what the bank quotes). To find the monthly amount, it simply rearranges the formula for P. To find the time, it steps forward month by month until the pot reaches the goal.
Worked example: $10,000 in two years
- Goal: $10,000, with $1,500 already saved
- Time: 24 months, in an account paying 4% APY
- Monthly amount needed: about $336 (roughly $78 a week)
- You pay in: about $9,570 in total; interest covers the other ~$430
With 0% interest you'd need $354 a month instead, so the account's interest is worth about $18 a month here. Helpful, but the deposits are doing the heavy lifting on any goal under five years.
How much does interest really help?
Over short periods, not much. Over long ones, a lot. Saving $300 a month for 2 years at 4% earns roughly $280 of interest. Keep going for 20 years and the interest is roughly $37,000, more than half of the $72,000 you put in. That's the reason long goals (retirement, a child's education) belong in investments, while short goals (a holiday next summer, an emergency fund) belong somewhere safe and easy to reach. For the difference between the rates banks quote, see APR vs APY.
Common savings goals and sensible timelines
| Goal | Typical target | Where to keep it |
|---|---|---|
| Starter emergency fund | $1,000 / £1,000 | Instant-access savings |
| Full emergency fund | 3–6 months of essential spending | High-yield / easy-access savings |
| Holiday or big purchase | The actual quote, plus 10% | Easy-access or regular saver |
| Car replacement | Price of the next car ÷ years until you need it | Savings or short-term fixed |
| House deposit | 5–20% of the price plus buying costs | Savings, ISA / LISA (UK) |
If you're working out an emergency fund target, how much emergency fund do I need? walks through the numbers. For irregular yearly bills, a sinking fund uses exactly this calculator, one goal at a time.
Making the plan actually happen
- Automate it on payday. A standing order the day your salary lands beats good intentions every time.
- Give each goal its own pot. Most banks let you name sub-accounts. "Japan 2027" is harder to raid than "savings".
- Round up the number. If the calculator says $332, save $340. Rates drop and life happens.
- Check in quarterly. Re-run the calculator with your new balance; if you're ahead, you can relax a bit. If you're behind, you'll know early.
Frequently asked questions
How much should I save each month to reach my goal?
Enter the goal, what you've already saved, the deadline and your interest rate. The calculator solves the future value formula for the monthly deposit, so the amount already includes the interest you'll earn.
How long will it take to save $10,000?
It depends on your monthly amount. At $300 a month with nothing saved and 4% APY, it takes about 2 years 6 months. Switch the calculator to 'How long will it take?' to try your own numbers.
Does the calculator assume deposits at the start or end of the month?
At the end of each month, which is slightly conservative. Saving at the start of the month earns one extra month of interest on each deposit.
What interest rate should I use?
Use your account's APY (or AER in the UK). If you're not sure, use a lower rate than you currently get, since savings rates can fall.
Should I save or pay off debt first?
Usually build a small emergency fund first, then focus on high-interest debt, then return to savings goals. Debt at 20%+ costs far more than a savings account earns.
Estimates only. Savings rates can change and interest may be taxable; this calculator assumes a constant rate and monthly deposits at the end of each month.