Savings Goal Calculator
To grow $2,000 into $20,000 in 3 years at 4% APY, save $464.77 a month. Without interest you'd need $500.00. Interest helps. It doesn't do the heavy lifting.
The formula
The monthly deposit is the payment that grows to the goal. What you already have grows too. The formula is PMT = (Goal − Current × (1 + i)n) × i ÷ [(1 + i)n − 1]. Here i is the monthly rate and n is the number of months.
- Monthly rate: 4% ÷ 12 = 0.3333%; months: 3 × 12 = 36.
- Your $2,000 grows to $2,254.54 on its own.
- Remaining gap: $20,000 − $2,254.54 = $17,745.46.
- Deposit: $17,745.46 × 0.003333 ÷ (1.1273 − 1) = $464.77.
Monthly savings for common goals
These start from zero at 4% APY, compounded monthly. Time cuts the deposit more than interest does.
| Goal | Amount | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|---|
| Emergency fund | $15,000 | $1,227 | $601 | $393 | $226 |
| Car down payment | $5,000 | $409 | $200 | $131 | $75 |
| Wedding | $30,000 | $2,454 | $1,203 | $786 | $452 |
| House down payment | $60,000 | $4,909 | $2,405 | $1,571 | $905 |
For goals under about five years, most people skip stocks. They keep the money in an FDIC-insured high-yield savings account, a money market account or CDs. That way a market drop can't wreck the plan. FDIC insurance covers $250,000 per depositor, per bank, per ownership category (FDIC).
Frequently asked questions
How much should I have in an emergency fund?
A common guideline is three to six months of basic living expenses. The CFPB suggests a small, specific goal first. Then build up with automatic transfers.
Does the interest rate make a big difference for short goals?
Not much. For a $20,000 goal over 3 years, 4% interest lowers the monthly deposit from $500.00 to $464.77. For short goals, steady deposits matter more than the rate. In other words, show up every month.
What is APY?
Annual percentage yield is the yearly return with compounding included. Banks must disclose it under the Truth in Savings Act. So APY is the best number to compare savings accounts.
Is interest on savings taxable?
Yes. Interest from savings accounts and CDs is taxed as ordinary income in the year it is paid. Banks report it on Form 1099-INT.
Not investment advice. These results are estimates. They use the numbers you enter and a constant rate of return. Real returns change every year. They can be negative. They are not guaranteed. Taxes, fees and inflation will change your real results. Talk with a licensed financial professional before you decide.
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Updated: October 2, 2026 · Sources and methodology