Savings Goal Calculator

What is savings goal calculator?

Two ways to think about a savings goal: "how much do I need to save per month to hit the target by date X" or "if I save $Y per month, when will I hit the target." This tool does both, and accounts for compound interest on the existing balance and on each new contribution.

The interest rate is the annual return on whatever you are saving in (savings account, money market, CDs, treasury bonds). For a high-yield savings account today, 4-5% is realistic. For a brokerage account in stocks, 7-10% is the long-run historical average but with significant year-to-year volatility. Set the rate to 0 to model a savings account with no interest.

How to use it

1. 1

   Pick a mode

   "Find time" if you know how much you can save per month. "Find amount" if you know when you need the money.

2. 2

   Enter the target

   How much you need in total, in today's dollars. The tool does not model inflation; subtract expected inflation if you want a real (purchasing-power-adjusted) number.

3. 3

   Enter your current savings

   What you have already put aside. Includes the balance in your savings account, not the money you are still earning.

4. 4

   Set the return rate

   Annual return as a percentage. 0 for cash, 4-5% for a high-yield savings account, 7-10% for a long-term stock portfolio.

Examples

Frequently asked questions

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