Grow savings with regular deposits.
PMT = (FV - PV × (1 + r)^n) × r / ((1 + r)^n - 1)
To find the regular deposit (PMT) required to reach a future savings goal, we use the Future Value of an Annuity formula, adjusted for any existing balance.
The total future value must equal your savings goal (FV). It is made up of two parts:
Rearranging for the required payment gives the formula below. Results are estimates; actual returns depend on your bank's compounding schedule and any fees.
Step 1 — Compound the existing balance: $1,000 × (1.004)^36 = $1,000 × 1.15397 ≈ $1,153.97 Step 2 — Remaining amount needed from deposits: $15,000 − $1,153.97 = $13,846.03 Step 3 — Apply annuity formula: PMT = $13,846.03 × 0.004 / ((1.004)^36 − 1) = $55.38 / 0.15397 ≈ $359.68
Result: You need to deposit approximately **$359.68 per month** for 3 years to reach your $15,000 savings goal, assuming a 4.8% annual interest rate and a $1,000 starting balance.
The result tells you the exact monthly contribution needed to hit your target. In the example above, depositing $359.68 every month means you contribute a total of $12,948.48 in deposits; the remaining ~$897.55 comes from interest earned — meaning compound interest does real work for you even at a modest rate. If the required deposit feels too high, try extending your timeline or increasing your starting balance to lower the monthly amount needed.
Saving a fixed amount on a regular schedule — sometimes called a systematic savings plan — is one of the most effective personal finance habits. Each deposit earns interest, and that interest then earns interest on itself (compounding), accelerating your progress toward your goal over time.
Most high-yield savings accounts compound interest daily or monthly. The more frequently interest compounds, the more you earn. For simplicity this calculator uses monthly compounding, which is standard for savings accounts and CDs. If your account compounds daily, your actual balance will be slightly higher than shown.
The interest rate you earn depends on the account type:
Financial planners often recommend the SMART goal framework — Specific, Measurable, Achievable, Relevant, and Time-bound. A savings calculator makes your goal Measurable and Time-bound instantly.
Before saving for discretionary goals, many financial experts recommend building an emergency fund covering 3–6 months of living expenses. This prevents you from dipping into goal-specific savings during unexpected events.
Note: Calculator results are estimates based on a fixed interest rate and regular deposit schedule. Actual savings growth may differ due to variable rates, irregular deposits, taxes on interest, or account fees. This tool is for educational and planning purposes only and does not constitute financial advice.
At a 4.8% annual rate, depositing $300/month with no starting balance, you will reach $10,000 in approximately 31 months (just under 2 years and 7 months). Compound interest means you contribute roughly $9,300 and earn the rest in interest.
More frequent deposits are generally better because each deposit starts earning interest sooner. Weekly deposits outperform monthly deposits slightly at the same annual total, because money enters the account earlier and compounds for longer.
Missing a deposit does not ruin your plan, but it means you will fall short of your goal by the target date unless you compensate later. You can re-run the calculator with your updated current balance and remaining time to find the new required deposit amount.
A common rule of thumb: if your debt's interest rate is higher than your savings rate, pay off the debt first — you effectively 'earn' a guaranteed return equal to the debt rate. For low-interest debt (e.g., below 4%), building an emergency fund simultaneously may make sense.
There is no universal answer — it depends entirely on your goal, timeline, and income. A common guideline is to save at least 20% of your take-home pay (the 50/30/20 rule), but use this calculator to set a target based on a specific goal rather than a percentage alone.
Yes. To calculate weekly deposits, use the annual rate divided by 52 for 'r' and the total number of weeks for 'n'. For annual deposits, divide the annual rate by 1 and use the number of years for 'n'. The calculator on this page handles the conversion automatically when you select your frequency.
Enter the APY (Annual Percentage Yield) offered by your savings account. As of 2024, high-yield savings accounts and money market accounts are offering 4–5% APY. Check your bank's current rate on their website or your account statement.
You can use it as a rough starting point, but retirement planning involves additional factors such as employer matching, tax-advantaged accounts (401k, IRA), expected investment returns with market volatility, and inflation. Consider using a dedicated retirement calculator for more accurate long-term projections.
Your starting balance (PV) compounds over the entire savings period. Even $500 today at 4.8% over 5 years grows to about $630 — that $130 in free interest directly reduces how much you need to deposit. The larger your starting balance, the lower your required monthly contribution.
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