Savings Goal Calculator
This calculator tells you how long it will take to reach a savings goal, given what you have saved, what you can add each month, and the interest you earn. It shows the target date, how much comes from your deposits, and how much comes from interest.
Use it for any fixed target: a house deposit, a car, a wedding, an emergency fund, or a trip. Seeing the goal as a date ("next June" rather than "someday") makes a savings plan easier to stick to.
How the timeline is calculated
Each month, the calculator adds one month of interest to your balance, then adds your deposit, and repeats until the balance reaches the goal:
Balancenext month = Balance × (1 + APY ÷ 12 ÷ 100) + Monthly deposit
This is compound growth: interest earns interest. Over a year or two the effect is modest, but over longer horizons it does real work. In the example below it covers several months of deposits.
Worked example
Goal: a $15,000 house deposit. Starting from $2,000, saving $400/month at 4% APY:
| Time to goal | 2 years 7 months (31 months) |
|---|---|
| Your deposits | $12,400 |
| Interest earned | ≈ $860 |
Without interest, the same plan would take 33 months, so the interest pays your last two deposits. Raising the deposit to $500 shortens the wait to about 25 months. At short horizons, how much you save matters far more than the rate you earn.
How to hit a savings goal faster
Three moves shorten the timeline. Automate the deposit on payday so saving happens before spending. Use a high-yield savings account, since the gap between a big-bank rate and the best rates is often several percentage points. Redirect windfalls like tax refunds and bonuses, which can each erase a month or more from the timeline.
Keep goal money separate from everyday cash. For goals under about five years, savings accounts and term deposits are the sensible home. Investing short-term money in the stock market risks the balance being down when you need it.
Frequently asked questions
How much do I need to save per month to reach my goal?
Divide the amount still needed by the months until your deadline, then reduce it slightly for interest. To fine-tune, adjust the monthly deposit in the calculator until the target date matches your deadline.
Does the calculator account for compound interest?
Yes. Interest is compounded monthly, which is how most savings accounts credit interest. The APY you enter is the annual yield, and the calculator applies one-twelfth of it each month.
Is interest on savings taxable?
In most countries, yes. Many places have allowances or tax-sheltered accounts (like ISAs in the UK or Roth IRAs in the US) that shelter some or all of it. The calculator shows gross interest, so your after-tax result may be slightly lower.
Should I save or invest for my goal?
A common rule: money needed within about five years belongs in savings, where the balance cannot fall. Money for goals a decade or more away can usually afford the ups and downs of investing. For retirement timelines, see the retirement savings calculator.
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Last updated . Formulas are shown on the page and checked against the worked example.
This calculator is for general information and education only. It is not professional advice. Confirm important decisions with a qualified adviser.