Savings Goal Calculator
Whether you're saving for a 20% down payment on a $400,000 home in Texas, a wedding, or a year-long sabbatical, this calculator tells you exactly how much to put aside each month to hit the target on time. Plug in the goal, your timeline, and any starting balance, and the math handles the rest.
How is this calculated?
Given a target future value (FV), starting balance (P), monthly rate (r/12), and number of months (n), the calculator solves the future value of an annuity formula for the required monthly contribution: PMT = (FV − P × (1 + r/12)^n) ÷ [((1 + r/12)^n − 1) / (r/12)]. Returns assumed compound monthly. For a high-yield savings account use the APY; for invested goals in a brokerage or Roth IRA use a long-run expected total return appropriate to your asset mix.
Frequently Asked Questions
Where should I keep short-term savings?
For goals within 1–3 years, a high-yield savings account or short-term Treasury bills protect capital while earning a real return. For 3–5 years, CDs or Treasury notes work well. Anything five years or further out can reasonably hold equities inside a Roth IRA or taxable brokerage account.
Should I use a Roth IRA for a house down payment?
First-time homebuyers can withdraw up to $10,000 of Roth IRA earnings tax-free for a home purchase, on top of their always-accessible contributions. It's a flexible option but uses retirement contribution room you can't get back. Talk to a CPA — IRS rules on the first-time buyer exception are nuanced.
How does inflation affect my goal?
If you're saving for a fixed-price item the cost may rise before you reach it. Home prices, weddings, and college all tend to outpace general inflation. Either inflate the target to tomorrow's dollars or use a real return — nominal expected return minus assumed inflation — when projecting growth.
What's a sensible savings rate to assume?
In 2026, top high-yield savings accounts pay around 4%–5% APY, short-term Treasury bills slightly more. For long-term invested goals, a 6%–7% real return on a balanced portfolio is a defensible long-run assumption, though year-to-year results will vary widely.
Last updated: May 2026 · Rates sourced from IRS