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Savings Goal Calculator

The future value of savings combines compound interest on an initial balance with the future value of regular contributions: FV = PV x (1 + r)^n + PMT x ((1 + r)^n - 1) / r, where r is the monthly interest rate and n is the number of months. This formula can be rearranged to solve for any single unknown, whether it is the time needed, the monthly contribution required, or the projected final balance. For example, reaching a $50,000 goal from $5,000 in current savings with $500 monthly contributions at 5% annual interest takes approximately 73 months (about 6 years and 1 month). Enter your savings details below and select which variable to solve for.

Quick Answer

Reaching a $50,000 savings goal from $5,000 with $500 monthly contributions at 5% annual interest takes an estimated 73 months (approximately 6 years and 1 month), with estimated interest of approximately $3,634.

Common Examples

Input Result
Goal $50,000, current $5,000, $500/month, 5% rate Estimated 73 months to reach goal
Goal $25,000, current $2,000, 4% rate, 36 months Estimated $622/month contribution needed
Goal $100,000, current $10,000, $800/month, 6% rate Estimated 85 months to reach goal
Current $10,000, $300/month, 5% rate, 120 months Estimated $62,934 final balance
Goal $20,000, current $0, $400/month, 4.5% rate Estimated 46 months to reach goal

How It Works

This calculator uses the future value formula for a lump sum combined with regular contributions:

FV = PV x (1 + r)^n + PMT x ((1 + r)^n - 1) / r

Where:

  • FV = future value (savings goal or final balance)
  • PV = present value (current savings)
  • PMT = monthly contribution
  • r = monthly interest rate (annual rate / 12 / 100)
  • n = number of months

The formula can be rearranged to solve for any one unknown:

  • Solve for months (n): iterative simulation month by month until the balance reaches the goal
  • Solve for PMT: PMT = (FV - PV x (1+r)^n) / (((1+r)^n - 1) / r)
  • Solve for FV: direct calculation using the formula above

Worked Example

To reach a $50,000 goal starting from $5,000 with $500 monthly contributions at 5% annual interest:

Monthly rate r = 0.05 / 12 = 0.004167. Month 1: Balance = $5,000 x 1.004167 + $500 = $5,520.83. Month 2: $5,520.83 x 1.004167 + $500 = $6,043.83. This continues month by month. After 73 months, the balance reaches approximately $50,000. Total contributions = $5,000 + ($500 x 73) = $41,500. Estimated interest earned = approximately $8,500.

To solve for monthly contribution: if the goal is $25,000, current savings are $2,000, and the time frame is 36 months at 4%, r = 0.003333. FV of current savings = $2,000 x (1.003333)^36 = $2,254.54. Remaining needed = $25,000 - $2,254.54 = $22,745.46. Annuity factor = ((1.003333)^36 - 1) / 0.003333 = 37.62. Monthly contribution = $22,745.46 / 37.62 = approximately $604.70.

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Frequently Asked Questions

What interest rate should I use for a savings account?
High-yield savings accounts typically offer between 4% and 5% APY as of 2025. Standard savings accounts may offer 0.01% to 0.5%. Check your bank's current rate, or use a conservative estimate. Rates change over time, so the actual return may differ from the rate entered.
Does this account for taxes on interest?
No. Interest earned in taxable savings accounts is generally subject to federal and state income tax. The estimates shown here reflect gross returns before taxes. After-tax returns will be lower. Tax-advantaged accounts (IRAs, 529 plans) may allow tax-free or tax-deferred growth.
How accurate is the time estimate?
The time estimate is mathematically accurate based on the inputs provided, assuming a constant interest rate and consistent monthly contributions. Real-world factors such as variable interest rates, missed contributions, or changes in the savings strategy will affect the actual timeline.
Can I use this for retirement savings planning?
This calculator provides a basic projection for any savings goal, including retirement. However, retirement planning involves additional factors such as inflation, employer matching, tax implications, and withdrawal strategies. For comprehensive retirement planning, consider using a dedicated retirement calculator and consulting a financial professional.
What if I already have enough saved?
If your current savings already exceed the goal amount, the calculator will show 0 months needed. If solving for monthly contribution and your current savings will grow to the goal through interest alone, the required contribution may be $0 or very small.

Learn More

Complete Guide to Compound Interest

How compound interest works, the math behind it, and how compounding frequency, time, and rate affect your money. Includes worked examples and common scenarios.