Savings Goal Calculator

Compound interest means your balance earns returns on previously earned interest, not just your contributions. Even a modest APY of 4–5% can meaningfully reduce the monthly amount you need to save, especially over longer timeframes. The longer your horizon, the bigger the impact of compounding.

A high-yield savings account (HYSA) or money market account typically offers 4–5% APY in a normal rate environment. For a conservative savings goal, use the current HYSA rate at your bank. If you plan to invest in a diversified portfolio, historical stock market returns average around 7–10% annually, but come with volatility. Use a lower rate for money you need on a fixed deadline.

You have a few levers: extend your target timeframe to lower the required monthly contribution, increase your starting balance by making a lump-sum deposit now, or accept a slightly higher APY by moving funds to a higher-yield account. Even small increases in your monthly contribution compound significantly over time.