Work out exactly how much to set aside each month to hit a savings target by a chosen date — with interest helping you get there.
Most savings advice is vague — "put a bit aside each month". This savings goal calculator gives you the exact figure. Tell it the amount you need, when you need it, and the interest your savings will earn, and it tells you how much to deposit every month to arrive on time. It works backwards from your goal, taking into account that the money you save will itself earn interest along the way.
Whether you are building an emergency fund, saving a house deposit, planning a wedding or putting money aside for a car, having a concrete monthly number turns a fuzzy intention into a plan you can automate. Because interest is on your side, you usually need to save a little less than the goal divided by the number of months.
This is the "sinking fund" or future-value-of-an-annuity formula solved for the payment. Each monthly deposit earns interest until the goal date, so earlier deposits contribute a little more than later ones. The higher the interest rate and the longer the horizon, the more the interest does the heavy lifting and the less you need to save yourself.
| Years | At 1% | At 3% | At 5% |
|---|---|---|---|
| 2 | $825 | $809 | $793 |
| 3 | $547 | $531 | $516 |
| 5 | $325 | $310 | $294 |
| 10 | $159 | $144 | $129 |
Approximate monthly deposits, interest compounded monthly. Figures rounded.
Automate the deposit. Set up a standing order for the calculated amount the day after payday so saving happens before you can spend it. Be realistic about the rate — use the actual rate on your savings account, not an optimistic investment return, especially for short horizons where market dips could hurt. Give yourself buffer by rounding the monthly amount up; finishing early beats falling short. And revisit the plan if your goal or timeline changes — a few extra months can dramatically lower the monthly burden.
Enter your goal, your timeline and your expected interest rate, and the calculator shows the exact monthly deposit needed. As a rule, more time and a higher rate both lower the amount you must save yourself.
Every deposit earns interest until the goal date, so part of your target is funded by growth rather than your own deposits. The longer the horizon and the higher the rate, the bigger this effect.
Use the rate on the account where the money will sit. For short-term goals a high-yield savings account rate is realistic; for very long goals you might use a conservative investment return, accepting more risk.
Extend your timeline, lower the goal, or find a higher-rate account. Even extending by a year noticeably reduces the required monthly deposit, as the savings table shows.
For goals within a few years, cash savings avoid the risk of a market drop right before you need the money. For goals many years away, investing may earn more, but the value can fall in the short term.
No. The calculator runs in your browser only. Nothing you enter is saved, transmitted or shared.