Savings Goal Calculator

How to calculate your monthly savings need

To reach any savings goal, you need three numbers: your target amount, your starting balance, and your expected annual return. The calculator uses the future value of an annuity formula — the same one financial planners use — to tell you exactly how much to put away each month.

The formula

Monthly savings = (Goal − Starting × (1+r)ⁿ) × r / [(1+r)ⁿ − 1]

Where r = monthly rate (annual ÷ 12) and n = number of months. If this is negative, your starting balance already grows to your goal on its own — no further saving needed.

What return rate to use

• 0.4%–0.5% APY — high-yield savings account (FDIC-insured, instant access)
• 4%–5% — CDs and Treasury bonds (locked 1–10 years, very safe)
• 6%–7% — diversified stock portfolio over 10+ years (historical average, not guaranteed)
• 0% — conservative planning: ignore investment growth entirely

Use the lower rate for short-term goals (under 5 years — markets can drop in any given year). Use the higher rate for long-term goals (10+ years — you have time to ride out volatility).

The two levers that matter

You can only pull two levers: save more or earn more on what you save. Saving more is guaranteed; earning more requires taking investment risk. An extra $100/month at 5% over 30 years is worth $83,000. A 1% higher return on $500/month for 30 years is worth $150,000. Both matter; the saving lever is more reliable.