What interest rate should I use?
Use APY from your actual savings vehicle: high-yield savings (4-5%), money market, or CDs. Never use hoped-for stock market returns for conservative planning.
Finance
Savings Goal Calculator
Calculate how much you need to save to reach your financial goals
Plan Your Savings
Estimate the amount and time needed to achieve your savings goals
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What this calculator does
A savings goal calculator projects how long it takes to reach a specific monetary target. It combines current savings, monthly contributions, and interest to project timeline. It also accounts for inflation showing how rising costs affect your target.
How it works
The calculator starts with current savings, adds monthly contributions each month while calculating compound interest on the growing balance. It tracks accumulation until reaching your goal and generates alternative scenarios.
Formula
Future Value = Present Value × (1 + r/12)^n + PMT × [((1 + r/12)^n - 1) / (r/12)]. For finding required payments, solve for PMT given target future value. Inflation adjustment: Adjusted Goal = Goal × (1 + inflation)^years.
Tips for using this calculator
- Start early to leverage compound interest
- Increase contributions during windfalls
- Choose accounts with highest realistic interest rate
- Review goal regularly and adjust for inflation
- Break large goals into smaller milestones
Frequently asked questions
How does inflation affect my goal?
Inflation reduces purchasing power. If your goal is $50,000 in 5 years at 2.5% inflation, you'll need about $56,400 for the same buying power.
What's the difference between contributions and interest?
Contributions are dollars you save from income. Interest is free money the bank pays. Over 5 years at 4%, you might contribute $12,000 but earn $1,300 in interest.