Savings Goal Calculator
Enter your goal amount and deadline — see exactly how much you need to save each month to get there.
To save $20,000 in 3 years with a 4% interest rate and no current savings, you need to put aside $524 per month. This calculator works for any goal: emergency fund, vacation, home down payment, new car, or college fund.
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Savings Goal Calculator
Target amount · Timeline · Interest rate · Current savings
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Your goal
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months
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Results
Goal amount
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Current savings (grown)
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Remaining to save
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Monthly savings needed
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Total contributions
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Interest earned
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How it's calculated
Present-value annuity formula
The calculator solves for the monthly payment (PMT) of an ordinary annuity that, combined with your existing savings, reaches your goal in the specified time.
Step 1: Grow current savings
Future value of current savings = C × (1 + r/12)^n
Step 2: Remaining gap
Gap = Goal − future value of current savings
Step 3: Monthly payment needed (annuity formula)
PMT = Gap × (r/12) / [(1 + r/12)^n − 1]
Example: Goal $20k, current $2k, 4.5%, 36 months
FV of current = $2,000 × (1.00375)^36 = $2,286
Gap = $20,000 − $2,286 = $17,714
PMT = $17,714 × 0.00375 / (1.00375^36 − 1) = $490/mo
- 1Grow current savings—
- 2Gap to fill with contributions—
- 3Monthly contribution needed—
- Annuity
- A series of equal payments at regular intervals. Your monthly savings is an ordinary annuity paid at end of period.
- High-yield savings account (HYSA)
- An online savings account paying significantly above the national average. In 2026, rates are 4–5% APY. Ideal for short-to-medium term goals.
- APY (Annual Percentage Yield)
- The actual yearly return including compound interest — different from APR which doesn't compound. Always compare APY between savings accounts.
Disclaimer: assumes constant interest rate. HYSA rates are variable and can change. For goals beyond 3 years, consider that rates may fall.
Frequently asked questions
How do I calculate monthly savings needed?
The formula is: PMT = Gap × (r/12) / [(1 + r/12)^n − 1], where Gap = Goal minus your current savings grown at the interest rate, r = annual rate, n = months. This is the annuity payment formula solved for PMT.
Where should I keep savings goal money?
Under 3 years: high-yield savings account (HYSA) — liquid, FDIC insured, 4–5% APY in 2026. 3–7 years: mix of HYSA and short-term bond funds. 7+ years: index funds may be appropriate given longer recovery time for market dips.
Should I include inflation in my goal?
For goals more than 3–5 years away, yes. Add 2–3% per year to your target. For example, a $20,000 vacation 10 years out might cost $26,000 in today's money. The real return calculator can help you model this.
What if I can't hit the required monthly savings?
Three options: (1) extend the timeline — more months means lower monthly requirement; (2) raise the interest rate — move to a higher-yield account; (3) reduce the goal amount — perhaps a smaller vacation or starter car. Adjust any of the inputs to find what fits your budget.