How the calculator works
Each month, your balance earns interest and then your deposit is added. Interest is entered as APY (annual percentage yield), the rate banks advertise for savings accounts, and it compounds monthly. For example, $1,000 already saved plus $357.80 a month at 4% APY reaches $10,000 in 24 months: you deposit $8,587 on top of the $1,000 you started with, and earn about $413 in interest.
With a set time, the calculator finds the monthly deposit that lands exactly on your goal. With a fixed deposit, it counts the months until your balance reaches the goal. To see how a balance grows over many years instead, use the compound interest calculator.
Setting a savings goal you'll actually hit
- Price it out. Look up the real cost: the insurance premium, flight prices, the laptop you want. A specific number is easier to save for than "some money for a trip."
- Pick a date. A deadline turns a goal into a monthly amount. If that amount doesn't fit your budget, move the date or lower the goal now, not halfway through.
- Automate it. Schedule a transfer to savings for the day after payday. Paid every two weeks? Divide the monthly amount by 2.17 (that's 26 paychecks ÷ 12 months), shown above as "per paycheck."
- Make room in your budget. The 50/30/20 budget calculator shows how much of your take-home pay could go to savings each month.
Sinking funds: saving for costs you know are coming
A sinking fund is a savings goal for an expense you can see coming, even if it's months away: a six-month car insurance premium, holiday gifts, annual subscriptions, back-to-school costs. Divide the cost by the months until it's due and save that much each month. When the bill arrives, the money is already there, so it doesn't end up on a credit card. Most people keep all their sinking funds in one savings account and track how much of the balance belongs to each.
Already carrying a balance? It often makes sense to keep a small emergency fund while you pay down high-interest debt. The credit card payoff calculator shows what each extra dollar saves in interest.
FAQ
Should I include interest?
If the money sits in a savings account that pays interest, yes. For short goals (under a year) interest makes little difference, so the result is close to goal ÷ months either way. Over several years it adds up.
Is APY the same as APR or interest rate?
APY includes compounding, so it's the rate you actually earn in a year. If your bank shows only a nominal rate compounded monthly, the APY is slightly higher; entering the nominal rate gives a slightly conservative result.
What about taxes and inflation?
They aren't included. Interest on a savings account is usually taxable, and prices can rise while you save. For long goals, consider padding your target a little.
Does this calculator store my data?
No. Everything is calculated in your browser.
For education and planning only. This isn't financial advice. Results are estimates; your bank's actual interest may differ.