How much to save each month
The monthly deposit for a goal is the goal minus what your current savings will grow to, divided by the growth factor of a series of deposits (the future value of an annuity).[1] Without interest, $18,000 over 36 months is $500.00 a month; at 4% APY it drops to $465.38 because interest does part of the work.
Monthly deposits for common goals, starting from zero at 4% APY:
| Goal | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| $10,000 | $818.43 | $262.18 | $151.11 | $68.17 |
| $25,000 | $2,046.09 | $655.46 | $377.76 | $170.42 |
| $50,000 | $4,092.17 | $1,310.92 | $755.53 | $340.84 |
| $100,000 | $8,184.35 | $2,621.84 | $1,511.05 | $681.68 |
Longer horizons help twice: more months to spread the goal and more time for interest. The weekly or every-two-weeks amounts appear under the result; they come out slightly lower than the monthly figure divided by four or two because money goes in sooner.
How long will it take to save?
Switch to "How long it takes" and enter what you can deposit. The calculator steps month by month until the balance reaches the goal and reports years and months. Saving $500 a month on top of $2,000 at 4% APY reaches $20,000 in 2 years and 10 months.
Picking an APY to plan with
Use the APY your savings account pays today, then check the plan again when the rate changes: savings rates are variable. For a sense of range, the FDIC publishes the national average savings rate each month; many online accounts pay several times that average.[4] Compare the two in dollars with the high-yield savings calculator. If the goal date is fixed, a CD or CD ladder can lock in a rate for the term.
Common savings goals
- Emergency fund. The CFPB suggests setting the target from the unexpected expenses you have actually faced, and saving automatically with recurring transfers.[2]
- Down payment or a car. Fixed date and amount: solve for the monthly deposit.
- Long-term goals such as $1 million (see the millionaire calculator) usually involve investing rather than a savings account; returns then vary, so treat the rate as an assumption. The compound interest calculator adds rising deposits and inflation.
Keep savings insuredBank deposits are insured by the FDIC up to $250,000 per depositor, per insured bank, for each account ownership category.[3]
Related calculators
- Savings calculatorBalance and interest from monthly deposits at an APY
- High yield savings account calculatorYour APY against the FDIC national average, in dollars
- Compound interest calculatorDeposits, any compounding, inflation, goal seek, chart and CSV
- Future value calculatorA lump sum and a series of payments, grown forward
Frequently asked questions
How much should I save each month to reach my goal?
Subtract what your current savings will grow to from the goal, then divide by the annuity factor for your APY and months. $20,000 in 3 years from $2,000 at 4% APY: $465.38 a month.
How long will it take to save $10,000?
At $300 a month and 4% APY, about 2 years and 8 months; at $500 a month, about 1 year and 8 months.
Does interest really change how much I need to save?
Over a few years, a little: interest covers a few percent of the goal at today's savings rates. Over 10 years or more it covers much more.
Should I save weekly or monthly?
Either works. Weekly or biweekly deposits put money in sooner, so the total needed is slightly less, and they can line up with paydays.