Savings Goal Calculator
Plan your path to financial goals. Calculate exactly how much to save each month with compound interest and inflation adjustments.
Plan Your Savings Goal
Calculate contributions needed to reach your target
7% is typical for diversified investments
Historical average is 2-3%
Save This Amount Every month
$698
to reach $50,000 in 5 years
Total Contributions
$41,904
Interest Earned
+$8,096
Final Balance
$50,000
Real Return Rate
3.9%
after inflation
How to Use This Calculator
Start with your savings goal - the total amount you want to accumulate. This could be for a house down payment, emergency fund, retirement milestone, or any financial target.
Enter any current savings you've already set aside toward this goal. Your existing balance will grow with compound interest, reducing the amount you need to contribute monthly.
Set your timeline realistically. Longer timeframes mean smaller monthly contributions but more time for market fluctuations. Shorter timeframes require larger contributions but offer more certainty.
Adjust the expected return based on your investment strategy. Savings accounts yield 4-5%, bonds 3-5%, and diversified stock portfolios historically average 7-10%. Use conservative estimates for critical goals.
Understanding Your Results
The contribution amount is your required periodic savings to reach your goal on time. This factors in compound interest earnings, making the total contributions less than your goal amount.
Total contributions shows how much you'll actually put in from your pocket. Interest earned is the extra money your investments generate - this is the power of compound growth.
The real return rate shows your actual purchasing power gain after accounting for inflation. This is the true measure of wealth building, not the nominal return rate.
The inflation note reveals what your goal amount will be worth in today's dollars. Use this to decide if you should increase your target to maintain the same purchasing power.
Frequently Asked Questions
How much should I save each month?
A common guideline is the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings. However, your specific savings amount depends on your goals and timeline. Use our calculator to find the exact monthly amount needed to reach your target.
What is a realistic savings goal?
Realistic savings goals include: 3-6 months of expenses for an emergency fund, 20% down payment for a home, or 10-15% of income for retirement. Start with smaller goals and increase as you build the habit. Our calculator helps you see if your goal is achievable.
How does compound interest work for savings?
Compound interest means you earn interest on both your principal and previously earned interest. For example, $1,000 at 7% annual return becomes $1,070 after year one. In year two, you earn 7% on $1,070, not just $1,000. This 'interest on interest' accelerates wealth building over time.
Why should I account for inflation in savings?
Inflation reduces purchasing power over time. If you're saving for a goal 10 years away, that $50,000 will buy less than it does today. At 3% inflation, $50,000 today equals about $67,000 in future dollars. Our calculator shows the real value of your goal.
What's a good expected return rate for savings?
High-yield savings accounts offer 4-5% (2024). Stock market index funds historically average 7-10% annually. A balanced portfolio might expect 5-7%. Use lower estimates for conservative planning. Our default of 7% represents a moderate investment portfolio.
Should I contribute weekly, bi-weekly, or monthly?
More frequent contributions slightly increase returns due to earlier investment. However, the difference is minimal - about 0.2% more annually for weekly vs monthly. Choose the frequency that matches your pay schedule for easier budgeting.
How do I reach my savings goal faster?
Increase contributions when you get raises, automate your savings, reduce expenses, earn more through side hustles, and choose higher-yield investments (with appropriate risk). Even small increases compound significantly over time.
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