Whether it's a dream vacation, emergency fund, or down payment on a home – with a clear savings plan, you can reach any goal. Our Savings Goal Calculator shows how much you need to save monthly and how compound interest works for you.
Monthly Contribution = Goal / ((((1 + r)^n - 1) / r) × (1 + r))
(r = monthly interest rate, n = number of months)
Example: $30,000 in 5 years at 5% interest
→ Monthly payment: ~$440
→ Your contributions: $26,400
→ Interest earned: $3,600 (compound interest!)
Emergency Fund: 3-6 months expenses → 6-12 months
Vacation: $2,000-$5,000 → 6-18 months
Car: $10,000-$30,000 → 2-5 years
Home Down Payment: $50,000-$100,000 → 5-10 years
Retirement: $500,000-$2,000,000 → 20-40 years
The 50-30-20 rule suggests: 50% for needs, 30% for wants, 20% for savings. On $4,000/month net, that's $800 for savings. Start with what's possible – even $50/month adds up over years.
Short-term goals (<3 years): HYSA – safe, liquid, ~4% APY. Medium-term (3-7 years): CDs or bond funds. Long-term (>7 years): Stock index funds/ETFs – higher risk but ~7% average return.
Interest is calculated on previously earned interest. The longer you save, the stronger this effect becomes. Over 30 years, your interest earnings can exceed your own contributions!
Rule: First pay off high-interest debt (credit cards, overdrafts). Then build emergency fund. Then balance low-interest debt (mortgage) with long-term investing.
Pro Tip: The best time to start is now! Every month you delay means significantly less ending balance due to compound interest. Start today with whatever you can.