Savings, CDs and tax
Savings Goal Calculator
How much to save each month to reach a goal by a date, counting what you have already and the interest it earns.
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- Runs in your browser; nothing is stored
Saving from zero at 4% APY: the monthly amount for each goal and timeline
| Goal | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| $5,000 | $410 | $201 | $132 | $76 |
| $10,000 | $819 | $402 | $263 | $152 |
| $20,000 | $1,637 | $803 | $525 | $303 |
| $50,000 | $4,093 | $2,006 | $1,311 | $756 |
| $100,000 | $8,185 | $4,012 | $2,622 | $1,512 |
How this calculator works
What you have saved grows at the APY for the whole period. The rest must come from equal monthly deposits, each earning interest from the month it goes in.
Monthly deposit = (goal − savings grown) × r ÷ ((1 + r)^n − 1), where r is the monthly rate equivalent to the APY and n the number of months.
Questions people ask
How much should I save each month to reach $10,000?
At 4% APY from zero: $819 a month for one year, $402 for two, $263 for three.
How much does interest help?
Over a few years, a little: saving $20,000 in 3 years at 4% takes $525 a month instead of $556 with no interest. Over longer periods it matters much more.
Where should I keep money for a goal?
For goals a few years away, an FDIC- or NCUA-insured high-yield savings account or a CD that matures when you need the money. Money for goals under five years usually shouldn't be in stocks.
What if I can't save that much?
Push the date back or lower the goal; the calculator updates as you type. Automating a transfer on payday makes any amount easier to keep up.
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Sources
Updated by the RateHerald team. The maths is tested against worked examples; report a problem.