How to use this calculator
Start by selecting what you're saving for, choosing a preset like “Down Payment” or “Vacation” fills in a typical goal amount, or pick “Custom” and enter your own. Then add how much you've already saved, how many months you have to reach your goal, and the interest rate you expect to earn.
The calculator shows your required monthly, weekly, and daily savings amounts, plus how much interest you'll earn along the way. The “Can I afford it?” section shows what percentage of a typical household income your plan requires, so you can judge whether to adjust your timeline or goal.
Savings goal benchmarks
| Goal | Typical Amount | Timeline | Monthly Savings |
|---|---|---|---|
| Down payment (20%) | $60,000 | 5 years | $1,000 |
| Vacation | $3,000 - $8,000 | 6 - 12 months | $500 - $670 |
| Wedding | $20,000 - $35,000 | 1 - 2 years | $1,000 - $1,750 |
| New car | $20,000 - $30,000 | 2 - 3 years | $700 - $1,250 |
| Emergency fund | $15,000 - $25,000 | 1 - 2 years | $1,050 - $1,250 |
Amounts are approximate and vary by location and lifestyle. Use the calculator above to get numbers tailored to your situation.
Where to save for your goal
The best place to park your savings depends on when you'll need the money:
- Under 1 year: High-yield savings account (HYSA). Earns 4 to 5% APY with no risk and instant access. Best for vacations, small purchases, and emergency funds.
- 1 to 3 years: HYSA or certificates of deposit (CDs). CDs may offer a slightly higher rate if you can lock the money up. Good for car funds and wedding savings.
- 3 to 5 years: Consider a mix: keep half in a HYSA and invest half in a conservative bond fund. This balances growth with safety for medium-term goals like a down payment.
- 5+ years: A diversified investment portfolio (index funds or target-date funds) gives you the best chance of beating inflation. Just be prepared for short-term ups and downs.
Frequently asked questions
How much should I save each month for a down payment?
It depends on your home price and timeline. For a $300,000 home with a 20% down payment ($60,000), saving $1,000/month in a high-yield savings account at 4.5% would get you there in about 4.5 years. A 10% down payment cuts the target in half but means paying for private mortgage insurance (PMI).
Should I invest my savings or keep them in a savings account?
For goals under 3 years, use a high-yield savings account or CD. The returns are lower but your money is safe and accessible. For goals 5+ years away, investing in a diversified portfolio may earn higher returns, but you risk losing money in a downturn right when you need it. For 3 to 5 year goals, a mix of both can work.
What is a realistic savings rate for most people?
Financial experts commonly recommend saving 20% of your after-tax income, following the 50/30/20 rule (50% needs, 30% wants, 20% savings). However, the average American savings rate is closer to 4 to 6%. Even saving 10 to 15% puts you ahead of most people. Start where you can and increase gradually.
How does interest help me reach my savings goal faster?
Interest reduces the amount you need to contribute yourself. For example, saving $50,000 over 3 years at 0% requires $1,389/month. But at 4.5% in a HYSA, you only need about $1,333/month because interest covers roughly $2,000 of your goal. Over longer timelines, the impact is even larger.