Savings Goal Calculator
Calculate the monthly amount you need to save to hit a financial goal by a target date.
What is Savings Goal Calculator?
This savings goal calculator solves the reverse of compound interest: given a target amount and a deadline, how much must you save every month to get there? Useful for planning a down payment, wedding, emergency fund, car purchase, or anything else with a number and a date.
It accounts for interest on both your starting balance and ongoing contributions at the APY you expect.
Formula
Solve the annuity future-value formula for the monthly payment:
PMT = (FV − PV × (1 + r)t) × rm ÷ ((1 + rm)n − 1)
- FV = target goal · PV = starting balance · t = years
- r = annual rate · rm = equivalent monthly rate · n = months
Worked example
Goal $50,000 in 5 years, starting with $5,000, 4.5% APY:
- Future value of starting balance ≈ $6,248
- Amount to build from monthly saving ≈ $43,752
- Required monthly contribution ≈ $654
- Total contributed ≈ $39,240 · interest ≈ $10,760
How to use this calculator
- Enter your savings goal.
- Enter any money you have already set aside for it.
- Enter how long you have. Longer = less per month.
- Enter the expected APY. High-yield savings accounts in 2025–2026 are commonly paying 4.0–4.5%; assume less if you want a conservative plan.
Frequently asked questions
Where should I park an emergency fund?
A high-yield savings account or money market fund is standard — FDIC-insured up to $250,000, liquid within 1–2 business days, and currently paying competitive APYs. Do not invest an emergency fund in stocks.
Should I use a Roth IRA for a house down payment?
You can withdraw your contributions (not earnings) from a Roth IRA at any time, penalty-free. First-time homebuyers can also withdraw up to $10,000 of earnings tax-free for a qualifying purchase. Still, a taxable account or HYSA is usually simpler.
How much should my emergency fund be?
Three to six months of essential expenses (rent, food, insurance, utilities, minimum debt payments). If your income is variable or your job market is thin, lean toward six months or more.