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Savings Goal Calculator

Updated · By the CalculatorDash editorial team · How we check our maths

Quick answer

To reach $20,000 in 3 years with $2,000 already saved in an account paying 4%, you need to save about $465 a month.

Savings goal

$
$
years
%

Save each month

$465

Total you deposit
$18,732
Interest earned
$1,268
Or each week
$107

How this calculator works

Working backwards from a goal turns a vague wish into a monthly number. This calculator grows what you've already saved at your interest rate, subtracts it from the target, and finds the regular monthly deposit that closes the gap by your deadline.

For goals within a few years, such as a house deposit, wedding or emergency fund, a high-yield savings account or fixed deposit is usually more appropriate than investing in shares, because you can't afford a market fall just before you need the money.

The formula

Existing savings grow to
saved × (1 + i)^n
Monthly saving
(goal − grown savings) × i ÷ ((1 + i)^n − 1), with i = rate ÷ 12

Worked example

$2,000 at 4% for 36 months grows to about $2,255, leaving about $17,745 to save. Spread over 36 months with interest, that needs about $465 a month. You deposit about $18,730 in total and earn about $1,270 of interest.

Tips

  1. 01Set up an automatic transfer on payday so the saving happens before you can spend it.
  2. 02Keep each goal in its own account or 'pot' so you can see progress.
  3. 03If the monthly number is too high, extend the deadline before lowering the goal.

Frequently asked questions

How do I calculate how much to save per month?

Subtract what your current savings will grow to from the goal, then divide by the future-value factor ((1 + i)^n − 1) ÷ i for your monthly rate i and number of months n.

Where should I keep short-term savings?

A high-yield savings account, money market account or fixed deposit, which keep the money safe and accessible.

Does interest make a big difference?

Over a few years it helps a little; over decades it does most of the work. That's why long-term goals are often invested.

What if I miss a month?

Recalculate with your new balance and remaining time; the required monthly amount will rise slightly.