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Savings Goal Calculator – How Much to Save Each Month

Set a goal — a house deposit, a car, an emergency fund or a holiday — and find out how much to save each month to reach it by a date. Or enter what you can save and see how long it will take, including the interest your savings earn.

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How to use the savings goal calculator

  1. Enter your savings goal and how much you’ve saved so far.
  2. Enter the interest rate your savings account pays.
  3. Choose what to work out:
    • How much a month — enter how many years you have.
    • How long it takes — enter how much you can save each month.

The result shows the monthly (and weekly) amount you need, or the time to reach your goal, plus how much of the goal comes from your deposits and how much from interest.

The formula

The calculator grows what you’ve already saved, then finds the monthly deposit that covers the rest:

Monthly saving = (Goal − Current × (1 + r)^n) × r ÷ ((1 + r)^n − 1)

where r is the monthly interest rate (yearly rate ÷ 12 ÷ 100) and n the number of months.

Worked example

You want $20,000 in 3 years for a house deposit, have $2,000 saved and earn 4%:

  • n = 36 months, r = 0.00333
  • Your $2,000 grows to about $2,255 by itself
  • Monthly saving needed ≈ $464.77

If instead you save a fixed $500 a month, you reach $20,000 in 34 months.

Tips for hitting your goal

  • Automate it. Set up a transfer for payday so saving happens first.
  • Use a separate account so the money isn’t spent by accident.
  • Name the goal. People save more when the account is called “House deposit” instead of “Savings 2”.
  • Increase the amount when you get a raise.
  • Pay off expensive debt first. Clearing a 20% credit card beats earning 4% on savings — see the debt payoff calculator.

Where to keep the money

For goals less than about five years away, safety matters more than return. High-yield savings accounts, money market accounts, fixed-term deposits, certificates of deposit and government savings schemes keep your balance steady. Longer goals can take some investment risk for a higher expected return, but the value can go down as well as up. Check the account’s interest rate, any notice period for withdrawals and whether deposits are protected by a government guarantee scheme in your country.

For long-term growth with regular deposits, try the compound interest calculator, and for retirement the retirement calculator. Results are estimates — see our disclaimer.

Frequently asked questions

How much do I need to save each month to reach $20,000 in 3 years?

If you already have $2,000 and your savings earn 4% a year, you need to save about $464.77 a month for 36 months. Without any interest it would be $500 a month.

How long will it take to save $20,000 at $500 a month?

Starting from $2,000 at 4% interest, it takes 34 months — just under three years.

What interest rate should I use?

Use the rate on the account where you’ll keep the money, such as a high-yield savings account or a fixed-term deposit. For short-term goals, don’t assume stock-market returns — the value can fall just when you need it.

How big should an emergency fund be?

A common guideline is three to six months of essential expenses. Workers with irregular income often aim for more.

Does the calculator include tax on interest?

No. Interest may be taxable depending on where you live and the type of account. Lower the rate a little to allow for tax if needed.

Is it better to save weekly or monthly?

The total is almost the same. Saving right after each payday — automatically — is what makes the biggest difference, because the money never reaches your spending account.

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