Turn a goal into a monthly number
"Save for a house" is a wish; "save $640 a month for 36 months" is a plan. This calculator converts a target amount and deadline into a specific monthly deposit, taking into account money you have already set aside and the interest your savings account will pay. It works for an emergency fund, a down payment, a wedding, a car, tuition, or any other goal with a price tag and a date.
How to use it
Enter the amount you want to have, what you have saved so far, the interest rate or APY on your savings, and the number of years until you need the money. The result shows how much to deposit each month, what your current savings will grow to on their own, and the total amount you will put in. The difference between your goal and your total deposits is the interest your money earns for you.
Where to keep short-term savings
For goals within a few years, most planners suggest keeping the money somewhere safe and accessible rather than in stocks, because a market drop right before you need the cash could derail the plan. Common options include high-yield savings accounts, money market accounts, certificates of deposit, and short-term Treasury bills. Check that bank deposits are FDIC-insured (or NCUA-insured at credit unions) up to the applicable limits. Rates change over time, so update the rate in the calculator occasionally.
Setting the right goal
Emergency fund: a frequently cited target is three to six months of essential expenses, more if your income is irregular. Home down payment: 20% avoids private mortgage insurance on conventional loans, though many buyers put down less; remember closing costs, often a few percent of the price. Car: saving the full price, or a large down payment, avoids or shrinks interest. For goals far in the future, consider inflating your target with our inflation calculator so it reflects future prices.
Making the plan stick
- Automate it. Schedule a transfer for the day after payday so the money moves before you can spend it.
- Use separate accounts or "buckets" for each goal so progress is visible.
- Redirect windfalls such as tax refunds or bonuses to shorten the timeline.
- Recalculate every few months; if you are ahead, you can reduce deposits or finish early.
What if the monthly amount is too high?
You have three levers: extend the deadline, reduce the goal, or find a higher yield. Extending the timeline is usually the most powerful because it both spreads deposits and gives interest more time to work. Try adjusting the years input to find a monthly figure that fits your budget.
Limitations
The calculator assumes a constant rate, monthly compounding, and deposits at the end of each month. It ignores taxes on interest, which are generally due each year on savings account interest.
Formula used
Future value of what you already have: FV₀ = C × (1 + r)n. Remaining need: G − FV₀.
Monthly deposit: PMT = (G − FV₀) × r / ((1 + r)n − 1), with r = annual rate ÷ 12 and n = months. If r = 0, PMT = (G − C) ÷ n.
Frequently asked questions
What if I already have enough?
If your current savings will grow to the goal on their own, the required monthly deposit shows as $0.
Should I include interest in my plan?
Yes, but conservatively. Savings rates change, so you may want to use a slightly lower rate than today’s.
Can I use this for investing goals?
For long horizons you can, but investment returns are not guaranteed, so plan with a cushion.
Is interest on savings taxable?
Generally yes, as ordinary income in the year it is earned, unless held in a tax-advantaged account.
Keep planning
- Compound Interest Calculator — see how interest compounds over time.
- Inflation Calculator — inflate a long-term goal to future dollars.
- Mortgage Calculator — see what a home purchase would cost monthly.