Savings Goal Calculator

How to Reach Any Savings Goal

Reaching a savings goal is a function of three variables: target amount, timeline, and return rate. Changing any one of them dramatically changes what you need to save monthly. The interest rate has less impact for short timelines but compounds significantly for goals 3+ years out.

The Math Behind the Calculator

Where PV is your current savings, r is the monthly interest rate (annual ÷ 12), and n is the number of months. This is the standard future value of an annuity formula.

Best Accounts for Short-Term Goals

• High-Yield Savings Accounts (HYSA): 4–5% APY in 2026. FDIC-insured, liquid within 1–3 days. Best for 1–3 year goals.
• Certificates of Deposit (CDs): Competitive rates for locked periods. Good for goals with a fixed date.
• Money Market Accounts: Similar to HYSA with check-writing. Useful if you need regular access.
• I Bonds (Series I): Inflation-linked, Treasury-backed. 1-year lock-up. Good for inflation protection.

For Goals 5+ Years Out: Consider Investing

Over long horizons, a diversified investment portfolio historically outpaces savings account rates. The tradeoff is volatility — your balance can drop 20–30% in a bad year. For goals you cannot afford to delay (down payment in 2 years), stay in high-yield savings. For goals where timing is flexible (general wealth building), investing is usually superior.