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Savings goal calculator: how much to save each month

Enter your target, what you have already saved, your deadline and the interest rate: get the monthly amount you need to put aside.

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Results

Monthly saving needed

$638.10

Total of your deposits
$22,972
Interest earned
$2,028
Number of deposits
36 months
Share of take-home pay
14.2%
Steady effort 10–20% of your pay is achievable with a budget.

Monthly saving by deadline

Monthly saving neededTotal of your depositsInterest earned
1 years current$2,028.75$24,345$655
2 years current$985.62$23,655$1,345
3 years current$638.10$22,972$2,028
5 years current$360.41$21,625$3,375
8 years current$204.73$19,654$5,346
10 years current$153.11$18,374$6,626

Turn a goal into a monthly number

A house down payment, a car bought with cash, a wedding, an emergency fund: every goal comes down to an amount and a date. This calculator works backwards from your target to tell you how much to save each month, taking into account what you already have and the interest your savings earn.

The formula

  1. Your current savings will grow on their own: S × (1 + r)^n, where r is the monthly rate and n the number of months.
  2. The remaining gap is G = goal − S × (1 + r)^n.
  3. The monthly saving needed is M = G × r ÷ ((1 + r)^n − 1).

With a 0% rate, it simplifies to M = G ÷ n. If your current savings already grow past the goal, the monthly amount is $0.

Worked example: $30,000 in 3 years

You have $5,000 saved in a high-yield account paying 4% and take home $4,500 a month.

  1. Monthly rate: 4% ÷ 12 ≈ 0.333%.
  2. Your $5,000 grows to 5,000 × 1.00333³⁶ ≈ $5,636.
  3. Remaining gap: 30,000 − 5,636 ≈ $24,364.
  4. Monthly saving: 24,364 × 0.00333 ÷ (1.00333³⁶ − 1) ≈ $638.10.
  5. You deposit $22,972 in total and interest contributes about $2,028.
  6. That is 14.2% of your take-home pay: a steady but achievable effort.

How the deadline changes the effort

Deadline Monthly saving Total deposits Interest earned
1 year $2,028.75 $24,345 $655
2 years $985.62 $23,655 $1,345
3 years $638.10 $22,972 $2,028
5 years $360.41 $21,625 $3,375
8 years $204.73 $19,654 $5,346
10 years $153.11 $18,374 $6,626

Giving yourself more time does more than spread the effort: interest covers a growing share of the goal.

Where to keep the money

  • Under 2 years: high-yield savings, money market accounts or short CDs in the US; easy-access savings or a cash ISA in the UK.
  • 2 to 5 years: CDs, Treasury bills or notes, premium bonds or fixed-rate bonds.
  • 8 years or more: some exposure to diversified index funds can raise the expected return, if you can live with ups and downs.

Avoid using a high stock-market return for a goal that is only a couple of years away: a downturn just before your deadline could push the goal back.

Habits that make it work

Automate a transfer the day after payday into an account dedicated to the goal. Build an emergency fund of three to six months of expenses first, so a surprise bill does not raid your goal. Review the target once a year to account for inflation and changes in your income.

Frequently asked questions

How do I work out how much to save each month?

First subtract what your current savings will grow to, then spread the remaining gap over the months using the future value of an annuity: M = gap × r / ((1 + r)^n − 1), where r is the monthly rate and n the number of months. To reach $30,000 in 3 years with $5,000 saved at 4%, you need about $638 a month.

Where should I keep money for a short-term goal?

For goals under three to five years, use accounts that cannot lose value: high-yield savings, money market accounts, CDs or Treasury bills in the US, easy-access savings or cash ISAs in the UK. Stocks can fall 20–30% in a single year, which can derail a goal with a fixed date.

What share of my income should I save?

A common guideline is the 50/30/20 rule: about 50% of take-home pay for needs, 30% for wants and 20% for savings and debt repayment. Build an emergency fund of three to six months of expenses before saving for other goals.

Should my goal account for inflation?

For goals several years away, yes. A $30,000 car today will cost about $32,800 in three years at 3% inflation. Raise your target accordingly, or use an interest rate net of inflation in the calculator.

How do I stay on track?

Set up an automatic transfer on payday so the money is saved before you can spend it. Keep the goal in a separate account named after it, and review the monthly amount once a year or whenever your pay changes.

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Results are estimates provided for information purposes. They do not replace professional advice.

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