Saving & investing
Savings Goal Calculator
Built and maintained by Chandranshu Kumar · Figures from the IRS, SSA, BLS and Freddie Mac
A goal is easier with a number
"Save more" is easy to ignore. "Move $400 to savings on payday" is something you can actually do, and automate. Once you know the monthly figure, set up a standing transfer for the day you get paid, so the money is gone before you can spend it. If the number feels too high, you have three levers: give the goal more time, aim for a bit less, or find a slightly higher return. The timeline is usually the gentlest one to stretch.
Assumes steady monthly saving and monthly compounding at the rate you choose. Real savings rates move around. Not financial advice.
How the monthly amount is worked out
The tool works backward from the goal. First it grows what you already have, $3,000 here, forward to the end of the term at the assumed return, since that money keeps earning while you save. Whatever is left between that and the $30,000 target is the part your monthly deposits have to cover.
It then solves for the level monthly amount that, compounded each month at the same rate, adds up to that remaining gap over five years. That comes to about $397 a month. Across the whole term you put in $26,835, and interest quietly covers the rest of the goal.
The 4% return is an assumption that fits a high-yield savings account or CD, which is where money you need in a few years usually belongs. Rates on those accounts move around, so treat the monthly figure as a close estimate. See the full method, or the compound interest calculator to see the growth from the other direction.
Common questions
How much to save monthly for $30,000 in 5 years?
Starting from $3,000 at about 4%, roughly $397 a month.
Where should I keep short-term savings?
For a goal a few years away, a high-yield savings account or a CD keeps it safe while earning a modest return, which is why we assume around 4% here rather than a stock return.
What if the monthly amount is more than I can manage?
You have three levers: give the goal more time, aim for a smaller target, or find a slightly higher return. Stretching the timeline is usually the gentlest of the three, since the required monthly deposit falls quickly as the years go up.
Does the starting balance change the monthly figure much?
Yes. Money already saved grows on its own for the full term, so a larger starting balance shrinks the gap your deposits need to close. In this example the $3,000 you begin with keeps compounding and trims the monthly amount below what a from-scratch saver would need.