How It Works
Choose your mode: either enter a monthly contribution to see when you'll reach your goal, or enter your target date to see how much you need to save per month. Interest is compounded monthly on your growing balance.
Where FV = future value (goal), P = starting balance, r = monthly interest rate, n = months, PMT = monthly contribution.
Common Savings Goals
| Goal | Typical Target | Timeframe |
|---|---|---|
| Emergency Fund | 3–6 months of expenses | 6–24 months |
| Vacation | $2,000–$10,000 | 6–18 months |
| Car Down Payment | 10–20% of car price | 1–3 years |
| Home Down Payment | 5–20% of home price | 2–10 years |
| College Fund | $50,000–$200,000 | 10–18 years |
| Retirement | 25× annual expenses | 20–40 years |
Savings Tips
- Automate it — set up an automatic transfer on payday so you save before you spend.
- Use a high-yield savings account — online banks often offer 4%–5% APY vs. 0.01% at traditional banks.
- The 50/30/20 rule — allocate 50% of income to needs, 30% to wants, 20% to savings and debt repayment.
- Treat savings as a bill — pay yourself first, then cover other expenses.
- Review and adjust quarterly — as income changes, increase your savings rate proportionally.
Frequently Asked Questions
Does interest make a big difference for short-term goals?
For goals under 2 years, interest has a modest effect. For longer-term goals (5+ years), even modest interest rates compound significantly and meaningfully accelerate reaching your target.
What interest rate should I use?
Use your actual savings account rate. High-yield savings accounts currently offer around 4%–5% APY. If you're investing in a brokerage, historical average returns have been around 7%–10% annually, though returns are not guaranteed.
What is an emergency fund and how much should I have?
An emergency fund is 3–6 months of your essential living expenses kept in a liquid, accessible account. It protects you from unexpected job loss, medical bills, or major repairs without going into debt.
Should I save or pay off debt first?
Build a small emergency fund first ($1,000), then aggressively pay high-interest debt (credit cards), then return to savings goals. Low-interest debt (mortgage, student loans) can be managed alongside saving.