A goal with a deadline turns into a monthly number. This calculator tells you how much to set aside each month, counting the interest a high-yield savings account adds along the way.
How this calculator works
First, your existing savings are grown at the interest rate to the target date.
The remaining gap is divided by the future value annuity factor, which gives the level monthly deposit that closes it exactly.
The formula
C = (G − S(1 + r)^n) × r / ((1 + r)^n − 1)- C
- monthly saving
- G
- goal
- S
- already saved
- r
- monthly rate
- n
- months
Worked example
To reach $30,000 in 3 years with $5,000 already saved at 4% APY, you need about $638 a month.
You deposit about $27,970 in total; interest supplies the remaining ~$2,030.
Tips
- Automate the transfer for the day after payday.
- Keep short-term goals (under ~5 years) in savings, CDs or Treasury bills rather than stocks.
- Split multiple goals into separate accounts so progress is visible.
Frequently asked questions
Where should I keep money for a savings goal?
For goals within a few years, an FDIC-insured high-yield savings account, CDs or Treasury bills protect your principal while earning interest.
How big should an emergency fund be?
Three to six months of essential expenses is the common guideline; more if your income is irregular.
Does the interest rate matter much?
Over short periods the monthly deposit does most of the work, but a higher APY still trims what you need to save.