HomePlanSavings goal

A goal, backward-solved.

Pick the target. Pick the deadline. We tell you how much per month.

You need to save
$616
~$142/week
Total contributions$36,960
Interest earned$8,040
Goal hit by—
Months60
Same goal, different timelines

Stretching the deadline has a much bigger effect on the monthly bite than chasing return.

YearsMonthlyTotal savedInterest earned
The math

Solving for the monthly contribution.

Goal-based saving runs the standard PMT formula in reverse. Most calculators ask: "How much will I have if I save X for Y years?" This one asks the more useful question: "How much do I need to save to hit Y dollars by Z date?" The math accounts for compounding on existing savings plus growth on each new contribution.

PMT = (FV − PV(1+r)n) × r ÷ [(1+r)n − 1]
  • FV — future value (your goal)
  • PV — present value (current savings)
  • r — monthly return (annual ÷ 12)
  • n — months to goal
Worked example

Anna's house down payment.

Scenario · $50,000 down payment in 5 years

Anna has $5,000 saved, wants $50,000 in 5 years for a 10% down payment, parks money in a HYSA at 4% APY.

Inputs. FV = $50,000, PV = $5,000, r = 0.333%/mo (4% ÷ 12), n = 60 months.
Existing savings grow. $5,000 × (1.00333)60 = $6,108. So new contributions need to fill the remaining $43,892.
Monthly contribution. $43,892 × 0.00333 ÷ [(1.00333)60 − 1] = $615.86/month.
Total contributed. $615.86 × 60 = $36,952. Interest earned over 5 years: ~$8,048.
Stretching to 7 years. Same goal, 7-year deadline = $410/month. Time stretches the math more than rate ever can.
$616/month for 5 years buys the down payment. ~$142/week, automated.
Vehicle by horizon

Match the account to the deadline.

HorizonVehiclesTypical 2026 yieldRisk
<6 monthsHYSA, money market fund4.0 – 4.5% APYFDIC / SIPC, near-zero principal risk
6 mo – 2 yrHYSA, T-bills (13/26-wk), 12-mo CDs4.2 – 4.8% APYEffectively zero with FDIC / Treasury
2 – 5 yrCD ladder, T-notes, short-duration bond ETF (BIL/SGOV)4.3 – 5.0% APYMild rate risk on longer duration
5 – 10 yr60/40 stock-bond, target-date fund~5 – 6% expectedDrawdowns to 15-25% possible
10+ yrBroad-market index ETF (VTI/VOO/ITOT)~7% real long-runDrawdowns to 30-50% possible

T-bill interest is exempt from state and local tax — meaningful in CA, NY, OR. I Bonds adjust for inflation but lock for at least 12 months and lose 3 months of interest if redeemed before 5 years. Brokered CDs at the same bank count toward the $250k FDIC limit.

Common mistakes

Where goal-saving derails.

Time is the largest lever, return is the smallest

For a $50k / 5-yr goal, dropping return from 7% to 0% only raises the monthly from $612 to $750. Stretching the deadline from 5 to 7 years cuts the monthly to $410. Chase deadlines and automation, not yield.

Wrong vehicle for the horizon

Putting a 1-year goal in S&P 500 is gambling, not investing. Putting a 20-year goal in a HYSA is a guaranteed real loss to inflation. The mismatch is the most common goal-saving mistake. Match the vehicle to the timeline first; optimize yield second.

No automation

Manual transfers fail because the decision recurs every month. Automate the transfer 1-2 days after payday so money leaves the checking account before discretionary spending. Named HYSA sub-accounts ("Down Payment," "Vacation") add psychological friction to dipping in.

Methodology

What's behind the math.

Assumptions
  • Monthly compounding at the annual rate ÷ 12. End-of-month contributions (the "ordinary annuity" form).
  • Existing savings (PV) compound at the same rate as new contributions, which assumes a single account/vehicle.
  • Yield is nominal, pre-tax. For after-tax planning in a taxable account, multiply rate by (1 − marginal tax rate).
  • Inflation not modelled in the monthly figure — to preserve real purchasing power, inflate the goal by expected CPI before solving (e.g., $50k goal in 5 years ≈ $58k at 3% inflation).
  • Excludes account fees, withdrawal penalties (e.g., early CD breakage), and tax drag on dividends/interest.

Sources: Federal Reserve H.15 selected interest rates (Treasury yields); FDIC deposit insurance limits (12 CFR 330); Reg D historical limit and 2020 Fed amendment removing 6-withdrawal restriction; BEA Personal Savings Rate (NIPA Table 2.1); Vanguard "Dollar-cost averaging vs lump sum" 2012/2023 study; TreasuryDirect I-Bond rate history.

Glossary

Saving vocabulary.

FV / PV
Future Value (the goal) and Present Value (current savings).
PMT
Periodic payment / contribution. The unknown the calculator solves for.
HYSA
High-Yield Savings Account. FDIC-insured deposit, currently 4-4.5% APY.
T-bill
US Treasury security under 1 year. State/local tax-exempt.
CD ladder
Stagger CD maturities (e.g., 1/2/3/4/5-year) so one matures yearly.
Sinking fund
Dedicated bucket for a known future expense.
I Bond
Treasury savings bond with inflation-adjusted variable rate.
FDIC limit
$250k per depositor, per bank, per ownership category.
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FAQ

Questions, asked plainly.

Use the reverse-PMT formula: PMT = (FV − PV(1+r)n) × r ÷ [(1+r)n − 1]. The math accounts for compounding on existing savings plus growth on each new contribution. Quick mental version: subtract current savings from the goal, divide by months to deadline (no-growth answer), then trim 5-15% if you're earning meaningful interest.

HYSA or short-duration Treasuries. In spring 2026, top HYSAs (Marcus, Ally, Capital One 360 Performance, SoFi, Wealthfront) yield 4.0-4.5% APY. 13/26-week T-bills yield similar with state/local tax exemption. Avoid stocks even for index funds — a 20-30% drawdown right before you need the money would be catastrophic, and equities have historically taken 1-3 years to recover.

Mid-horizon money sits between cash and stocks. Reasonable: laddered CDs (1-3 yr terms, 4.3-4.8% APY), short-duration Treasury ETFs (BIL, SHV, SGOV at 4.2-4.5%), I Bonds (composite ~3-4%), or 60/40 stock-bond if drawdowns to 10-15% are tolerable. Standard rule: subtract years to goal from 100 to get bond percentage, but for under-5-year goals many planners skew further to bonds and cash.

Long-horizon belongs in diversified equity. A low-cost broad-market index ETF (VTI, ITOT, VOO at 0.03% expense) has historically returned 7% real / 10% nominal over multi-decade periods. Per Vanguard's 2012/2023 study, lump-sum beats DCA 68% of the time over 5+ year horizons. Bond allocation 0-30% depending on risk tolerance and deadline flexibility.

$250,000 per depositor, per insured bank, per ownership category. Joint accounts get $250k per co-owner ($500k for couples). Brokered CDs at the same bank count toward the $250k. To exceed coverage, split across banks or use a brokered service that distributes. Treasuries have no insurance limit — they're direct US obligations. Money market mutual funds are NOT FDIC-insured (they're SIPC-protected, which is different).

US personal savings rate per BEA was around 4-5% through 2024-25, the lowest in decades. Financial-planning rule: 20% of after-tax income (Warren's 50/30/20). FIRE practitioners aim for 40-70%, which compresses runway dramatically — a 50% rate hits 25× annual expenses in ~17 years per Mr. Money Mustache's 2012 framework.

Both, in order: (1) $1-2k starter emergency fund; (2) 401(k) match (free 100% return); (3) high-APR debt (>7%); (4) full 3-6 month emergency fund; (5) tax-advantaged retirement (Roth IRA → 401(k) limit); (6) goal-specific savings; (7) taxable brokerage. The order matters because match dollars and tax-advantaged accounts beat goal-based saving on tax-adjusted return.

Yes, always. Automation removes the monthly decision — the highest-leverage behavioral fix in personal finance. Schedule the transfer 1-2 days after payday so money leaves before discretionary spending. Many HYSAs allow named sub-accounts ("Down Payment," "Vacation") that reduce dip-in temptation. Reg D's old 6-withdrawals limit was suspended by the Fed in 2020 and made permanent in 2021.

For under-2-year cash-equivalent goals, the gap is small — 4% APY on a year of monthly contributions earns ~2% more than the same dollars deployed at year-start. For 5+ year stock investments, lump-sum beats DCA 68% of the time per Vanguard. Honest answer: invest cash you have now, automate contributions for cash you'll have later. Don't hold cash for "better timing."

A dedicated savings bucket for a known future expense — Christmas, car insurance, vacation, annual property tax. Divide expected total by months until due, save monthly, the bill arrives fully funded instead of triggering debt. Most planners run 5-10 sinking funds in named HYSA sub-accounts in parallel. Eliminating financial "surprises" is what separates a budget from a system.