Savings Goal Calculator
Calculate exactly how much you need to save each month to reach your financial goal.
Your Goal
How Your Goal Will Be Reached
Timeline Comparison
| Years | Monthly | Total Invested |
|---|---|---|
| 3 years | $2,390 | $91,043 |
| 5 years | $1,337 | $85,197 |
| 7 years | $888 | $79,576 |
| 10 years | $555 | $71,563 |
| 15 years | $302 | $59,300 |
Longer timeline = lower monthly savings. Time does the heavy lifting!
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Start With the End in Mind
Most people save what they can and hope it's enough. A smarter approach: set your target first, calculate the exact monthly amount, then automate it. This "reverse engineering" approach makes goals concrete and achievable.
Our calculator does the math, shows you how compound interest helps, checks if the amount fits your budget, and compares different timelines so you can find the right balance between saving aggressively and living comfortably.
Typical Savings Goals
| Goal | Typical Amount | Timeline | Rate | Monthly* |
|---|---|---|---|---|
| Emergency Fund | $15,000 | 2 years | 4% | $600 |
| New Car | $35,000 | 3 years | 5% | $895 |
| Wedding | $30,000 | 2 years | 4% | $1,200 |
| House Down Payment | $60,000 | 5 years | 6% | $860 |
| Child Education | $100,000 | 18 years | 7% | $230 |
* Starting from $0. Less if you already have savings.
The 50/30/20 Rule
If monthly income is $5,000, aim for $1,000/month total savings. Split between retirement, emergency fund, and specific goals.
Key Concepts
Pay Yourself First
Transfer savings on payday before spending anything. What's "left over" is for wants—not savings.
Compound Interest Magic
Interest earns interest. Long timelines mean compound interest contributes 30-50% of your goal!
Time Flexibility
Extending timeline by just 1-2 years can reduce monthly savings by 20-30%. Use timeline comparison.
Emergency Fund First
Without 3-6 months expenses saved, you'll raid other goals for emergencies. Build this first.
Calculator Features
Frequently Asked Questions
What is a good savings rate as a percentage of income?
The 50/30/20 rule is a popular guideline: 50% needs (rent, food, utilities). 30% wants (entertainment, dining). 20% savings and debt repayment. For aggressive savers, 25-30% savings rate accelerates wealth building. For goal-specific savings on top of retirement, 10-15% of income for medium-term goals is reasonable. Our affordability check shows: Under 10% of income = very comfortable. 10-20% = achievable with discipline. 20-30% = challenging, requires sacrifice. Over 30% = consider extending timeline.
How does compound interest help my savings goal?
Compound interest earns interest on your interest, dramatically reducing how much you need to contribute. Example: $100,000 goal in 10 years. Without interest (0%): Need $833/month. With 6% return: Need only $615/month. That's $26,160 less you need to contribute—the rest comes from compound interest! The longer your timeline, the more compound interest helps. This is why starting early is so powerful.
What interest rate should I assume for savings goals?
Depends on timeline and risk tolerance: Short-term (1-3 years): 3-5% (high-yield savings, CDs). You can't afford market volatility. Medium-term (3-7 years): 5-7% (balanced funds, bond-heavy portfolio). Long-term (7+ years): 7-10% (stock index funds). More time to recover from downturns. Conservative assumption: Use 6% for planning—better to overestimate savings needed than underestimate. Never assume 10%+ for goals you can't miss.
Should I save with current savings or start fresh?
Always account for existing savings—they have a head start on compounding. Example: Goal of $50,000 in 5 years at 6%. Starting from $0: Need $722/month. Starting from $10,000: Need $517/month. Your $10,000 grows to ~$13,400 on its own, reducing your monthly burden by $205. This calculator separates: (1) How much your current savings will grow to. (2) How much more you need from new contributions.
How do I prioritize multiple savings goals?
Priority order: (1) Emergency fund first (3-6 months expenses). Without this, you'll raid other goals for emergencies. (2) Employer 401(k) match. It's free money—100% return. (3) High-interest debt payoff. Guaranteed 'return' equal to interest rate. (4) Time-critical goals (house, wedding with set dates). (5) Flexible goals (vacation, car upgrade). For multiple goals, allocate your savings budget by priority and deadline. Tools like ours help calculate each goal's monthly need.
What if I can't afford the monthly savings amount?
Options if monthly amount is too high: (1) Extend timeline—significantly reduces monthly need. (2) Reduce goal amount—do you really need that much? (3) Increase starting amount—one-time boost from bonus/windfall. (4) Find higher return—but don't chase unrealistic rates. (5) Combination approach—slightly adjust each variable. Use our timeline comparison to see how extending by 1-2 years affects monthly savings. Sometimes just 2 extra years cuts monthly need by 30%.
Where should I keep my goal savings?
Match account to timeline: 1-2 years: High-yield savings account (FDIC insured). 2-5 years: CD ladders, money market, short-term bond fund. 5-10 years: Balanced fund (60/40 stocks/bonds). 10+ years: Stock index funds (can ride out volatility). Never invest short-term goals in stocks—you might need the money during a downturn. The rule: If you'd panic if it dropped 30%, use a savings account instead.
How do I stay motivated for long-term goals?
Proven motivation strategies: (1) Automate transfers on payday—'pay yourself first'. (2) Give your account a goal name ('Hawaii 2027', 'House Fund'). (3) Create visual progress tracker—charts keep you engaged. (4) Celebrate milestones (25%, 50%, 75% complete). (5) Keep goal visual—photo of dream house as phone wallpaper. (6) Review quarterly—adjust if needed but stay committed. Our yearly progress table helps visualize how your balance grows over time.
Should I pay off debt or save for goals?
Compare interest rates: Debt interest > savings return = pay debt first. Credit card at 20% beats any savings investment. Exception: Always get employer 401(k) match first. General approach: (1) Minimum emergency fund ($1,000-2,000). (2) Attack high-interest debt (10%+). (3) Get full employer match. (4) Finish emergency fund. (5) Pay medium-interest debt. (6) Save for goals. For low-interest debt (under 5%), it's mathematically fine to save while paying minimums.
How do I account for inflation in my savings goal?
Inflate your goal amount for far-future needs: Future Cost = Today's Cost × (1 + inflation)^years. Example: College costs $50,000/year today, child is 5 (13 years until college). At 5% education inflation: $50,000 × (1.05)^13 = $93,000/year. Plan for $372,000 total, not $200,000! For shorter goals (under 5 years), inflation adjustment is less critical but still worth considering. Use 3% for general inflation, 5-6% for education/healthcare.