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Savings Goal Calculator

Calculate how much you need to save each month to reach your financial goal.

Inputs

$
$
5.0%
015
3.0%
015
60 months (5.0 yrs)
6240

Results

Monthly Savings Needed
$640.87
/month
💡
Worth knowing: Your $50,000 goal will only have the buying power of $43,130.44 in today's money. To maintain full purchasing power, you'd need to save $757.97/mo to reach $57,963.7.
Total Contributions
$43,452.33
Interest Earned
$6,547.67

Disclaimer: This calculator provides estimates for informational purposes only. Results are not financial advice. Consult a qualified financial advisor for decisions about your specific situation. Actual rates, terms, and conditions may vary by lender and individual circumstances.

How Does the Savings Goal Calculator Work?

This calculator works backward from your financial goal to determine exactly how much you need to save each month. It accounts for your current savings, the interest rate you can earn, and your target timeline to compute the required monthly deposit. The math incorporates compound interest on both your existing savings and your future monthly contributions. This calculator is especially useful for goals like building a down payment, saving for a wedding, funding a vacation, or creating an education fund. By showing you a concrete monthly number, it transforms a large, intimidating savings goal into manageable monthly steps.

How to Use This Calculator

Enter your total savings goal (how much you need), your current savings (what you already have), the annual interest rate you expect to earn on your savings (4-5% for high-yield savings accounts, 7-10% for investment accounts), and your timeline in years. The calculator shows the monthly savings amount needed. If the required monthly amount is too high, try extending your timeline or adjusting your goal. You can also experiment with moving your current savings to a higher-yield account to see how a better interest rate reduces the required monthly contribution.

Example Calculation

Alex wants to save $60,000 for a house down payment in 5 years. He currently has $8,000 in a high-yield savings account earning 4.5% APY.

  1. 1Target amount = $60,000
  2. 2Current savings = $8,000
  3. 3Annual interest rate = 4.5%, monthly rate = 0.375%
  4. 4Timeline = 5 years (60 months)
  5. 5Future value of current savings: $8,000 x (1.00375)^60 = $10,008
  6. 6Remaining goal = $60,000 - $10,008 = $49,992
  7. 7Monthly savings needed using future value of annuity formula = $749
Result: Alex needs to save approximately $749 per month for 5 years to reach his $60,000 down payment goal, assuming 4.5% interest on his savings.

Understanding Your Results

The monthly savings figure is the minimum you need to set aside each month to reach your goal on time. The interest earned component shows how much your money earns for you along the way. A higher interest rate or longer timeline reduces the required monthly contribution. If the monthly amount exceeds your budget, consider: extending your deadline, increasing your interest rate by moving to a better savings vehicle, boosting your starting balance with a windfall, or adjusting your goal to a more achievable target.

Tips & Best Practices

  • ✓Automate your savings with automatic transfers on payday — you will not miss what you do not see.
  • ✓Keep short-term savings (under 3 years) in a high-yield savings account for safety and accessibility.
  • ✓For longer-term goals (5+ years), consider investing in a diversified portfolio for potentially higher returns.
  • ✓Review and increase your savings amount annually, especially after raises or when expenses decrease.
  • ✓Direct any windfalls (tax refunds, bonuses, gifts) toward your goal for a significant boost.

Frequently Asked Questions

How much should I save each month?â–¾
The 50/30/20 rule suggests saving 20% of after-tax income: 50% for needs, 30% for wants, and 20% for savings and debt repayment. However, the right amount depends on your specific goals and timeline. This calculator helps you find the exact monthly savings needed for any goal. Start with whatever you can and increase over time.
Where should I put my savings?â–¾
For short-term goals (1-3 years), use high-yield savings accounts or CDs for safety and FDIC insurance. For medium-term goals (3-7 years), consider a mix of bonds and conservative stock funds. For long-term goals (7+ years), a diversified stock portfolio historically provides the best growth, though with more short-term volatility.
Should I adjust my savings goal for inflation?â–¾
Yes, especially for goals 5+ years away. If your goal is to buy something that costs $50,000 today, at 3% inflation it will cost about $57,964 in 5 years and $67,196 in 10 years. This calculator helps you see the inflation-adjusted target and how much more you may need to save.
What if I cannot afford the recommended monthly savings?â–¾
Start with whatever you can, even if it is $25 or $50 per month. Some progress toward your goal is better than none. Look for ways to gradually increase: direct raises, tax refunds, and reduced expenses toward savings. Also consider extending your timeline, which significantly reduces the monthly requirement. Saving $500/month for 8 years is often more achievable than $850/month for 5 years.
Is it better to save a lump sum or monthly?â–¾
Mathematically, investing a lump sum earlier gives your money more time to compound and typically produces a higher ending balance. However, most people do not have a lump sum available and benefit from the discipline and consistency of monthly savings. Monthly contributions also provide dollar-cost averaging when investing in volatile markets. The best strategy is the one you can stick to consistently.
By CalcMaven Editorial TeamLast Updated: February 2026

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