How to use the savings calculator
- Choose what to solve for: the monthly amount you need to save, or the time it will take.
- Enter your savings goal and how much you’ve already saved.
- Enter the years until your goal, or the monthly deposit you can make.
- Add the interest rate (APY) your savings earn.
The chart and the year-by-year table split your balance into the money you put in and the interest it earned.
How the monthly amount is calculated
Your current savings keep growing on their own, so the calculator first works out what they’ll be worth by your deadline. Your monthly deposits make up the rest:
Monthly deposit = remaining amount × i ÷ ((1 + i)n − 1)where i is the monthly rate that matches your APY and n is the number of months.
Example: $25,000 in three years
| Interest rate (APY) | Save each month | Total you put in | Interest earned |
|---|---|---|---|
| 0% | $638.89 | $25,000 | $0 |
| 1% | $628.00 | $24,608 | $392 |
| 4% | $596.48 | $23,473 | $1,527 |
| 5% | $586.33 | $23,108 | $1,892 |
At 4% APY instead of 0%, you need about $42 less each month and interest does about $1,500 of the work. Saving a fixed $500 a month at 4% instead reaches the goal in 43 months, a little over three and a half years.
Where to keep money for a goal
- High-yield savings accounts: easy access and a variable rate. See our guide to high-yield savings.
- Certificates of deposit (CDs): a fixed rate for leaving money in for a set term, usually with a penalty if you withdraw early.
- Money market accounts: savings accounts that may come with checks or a debit card.
- Investments: for goals more than about five years away, some people invest instead. Returns can be higher, but values go up and down. Our investment calculator models that.
In the US, deposits at FDIC-insured banks are insured up to $250,000 per depositor, per bank, for each account ownership category.
Tips for reaching your goal sooner
- Set up an automatic transfer on payday, so the money is saved before you can spend it.
- Give each goal its own account or nickname, so you can see your progress.
- Put windfalls such as tax refunds and bonuses toward the goal.
- Build an emergency fund before other goals. Our emergency fund guide explains how.
- Find room in your spending with the 50/30/20 rule and our budget calculator.
Frequently asked questions
How much should I save each month?
It depends on your goals and deadlines. A common starting point is to put at least 20% of take-home pay toward savings and extra debt payments, as in the 50/30/20 rule. Use the calculator to work out what each goal needs.
How long will it take to save $10,000?
About 20 months at $500 a month. Interest helps a little, but the amount you save matters most: at $800 a month it takes about 13 months.
What is APY?
The annual percentage yield is the yearly return on savings, including compounding. A higher APY means your money grows faster. Our APR vs. APY guide explains the difference from APR.
Is interest on savings taxed?
In the US, interest is generally taxable income in the year you earn it, even if you leave it in the account. The calculator shows growth before tax.
Should I save or pay off debt first?
Many people build a small emergency fund first, then focus on high-interest debt such as credit cards, because that interest usually costs more than savings earn. Our credit card payoff calculator shows how fast you could clear a card.
Related calculators and guides
Estimates assume a steady APY and the same deposit every month. Real rates can change.