Savings Goal Calculator
Find the monthly contribution needed to reach a target amount by a chosen date.
How it works
This calculator solves for the monthly contribution needed to reach your goal, given a starting balance, time horizon, and expected annual rate. For irregular deposits or different compounding schedules, use the compound calculator.
What a short-horizon goal really needs
Short goals behave differently from long ones. Over 3 years at 6%, reaching $10,000 from $1,000 needs about $223.80 a month — and almost all of that is your own money. Compounding barely participates at this timescale, which changes what you should optimise.
| Timeline | Monthly needed | You contribute | Growth supplies |
|---|---|---|---|
| 1 years | $725 | $8,695 | 3% |
| 2 years | $349 | $8,373 | 6% |
| 3 years | $224 | $8,057 | 9% |
| 5 years | $124 | $7,440 | 16% |
| 10 years | $50 | $5,990 | 30% |
Over three years, growth supplies about 9% of a $10,000 goal. Doubling the return from 6% to 12% only reduces the monthly requirement from $223.80 to $198.93. On a short goal the contribution is nearly everything, which is also why taking market risk to hit a three-year target is usually the wrong trade — you accept the downside for very little of the upside.
Matching the account to the timeline
- Under two years: a savings account or term deposit. Certainty is worth more than a percentage point when the date is fixed.
- Two to five years: cash or low-volatility options. There is not enough time to recover from a significant fall.
- Five to ten years: a mixed approach becomes defensible, with the balance shifting as the date approaches.
- Beyond ten years: the calculus flips — now the risk of holding cash and losing purchasing power to inflation outweighs market volatility.
The general rule is that the shorter the goal, the more the plan depends on what you deposit and the less it depends on what you earn. For long-horizon planning where growth does most of the work, the compound interest calculator and the monthly investment calculator are the better tools.
Questions about savings goals
How much do I need to save each month to reach my goal?
Divide the shortfall by the number of months and adjust for growth. For $10,000 in 3 years from $1,000 at 6%, about $223.80 a month.
Should I invest money I need in three years?
Usually not in anything volatile. A three-year horizon offers little time to recover from a fall, and as the table above shows, growth contributes only a small share of a short-term goal anyway.
What if I cannot afford the monthly amount?
Extend the deadline before anything else. The same $10,000 goal over five years needs about $124 a month instead of $224.
Does a starting balance help on a short goal?
Mostly by reducing what is left to save rather than by compounding. Over three years a starting balance grows very little; its value is that it is already there.