What interest rate should I assume for a savings goal?

For short-term goals you'll keep in cash, use a high-yield savings account rate (around 4-5% APY in 2026). Don't assume stock-market returns for money you need within a few years — that money should stay in safe, liquid accounts where the rate is lower but the balance won't drop when you need it.

What if I can't afford the required monthly amount?

You have three levers: extend the timeline (more months lowers the monthly amount the most), lower the goal, or increase your starting balance. Pushing the deadline out is usually the most powerful adjustment because it both spreads the deposits and gives compounding more time to work.

Savings Goal Calculator

Tell it your target, timeline, and interest rate — get the exact amount to save each month, with compound interest doing part of the work.

Savings Goal Calculator📅 Updated for 2026⚡ Instant results🔒 No sign-up required

🎯Your Goal

Savings Goal

$1,000$500,000

Already Saved

$0$200,000

Annual Interest Rate (APY)

0.0%12.0%

High-yield savings was ~4-5% APY in 2026

Timeline

1 yr30 yr

60 monthly deposits

Where the Money Comes From

Starting balance$5,000

Your future deposits$21,215

Interest earned$3,785

What This Calculator Does

This Savings Goal Calculator works backwards from your target. Instead of asking 'how much will I have,' it answers 'how much do I need to save each month to get there by my deadline?'

It factors in your current balance and the interest your savings will earn along the way, so you can see how much of the goal comes from your own deposits versus compounding — and adjust the timeline or target until the monthly number fits your budget.

Formula

PMT = (FV − PV(1+r)ⁿ) × r / ((1+r)ⁿ − 1)

FV is your goal, PV your current savings, r the monthly rate, and n the number of months. Interest earned reduces the deposits you personally need to make.

FVTarget amount (your savings goal)

PVAmount you have saved today

rMonthly interest rate (APY ÷ 12)

nNumber of monthly deposits

Examples

Example: $30,000 in 5 years at 4.5% APY

Goal $30,000, $5,000 already saved, 60 monthly deposits at 4.5% APY.

You'd need about $345/month. Your deposits total ~$25,700; interest contributes the rest of the $30,000.

Example: stretch the timeline to 8 years

Same $30,000 goal and $5,000 start, but 96 months instead of 60.

The required deposit drops to roughly $190/month — and interest covers a much larger share, showing why time is the most powerful lever.

Frequently Asked Questions

How do I calculate how much to save each month?+

Subtract your current savings (grown at your rate) from the goal, then divide by the future-value annuity factor for your timeline. This tool does it automatically. A rough no-interest check: monthly = (goal − current) ÷ months.

Does interest reduce how much I need to save?+

Yes — the higher the rate and longer the timeline, the more of your goal is funded by interest. Over 5-10 years in a 4-5% account, interest can cover a meaningful share.

What rate should I assume?+

For money you'll need within a few years, use a high-yield savings rate (4-5% APY in 2026), not stock-market returns. Short-term money belongs in safe, liquid accounts.

What if I can't afford the monthly amount?+

Extend the timeline (most powerful), lower the goal, or add to your starting balance. A longer deadline spreads deposits and gives compounding more time.