Savings Goal Calculator: How to Reach Long-Term Savings Goals

To use the calculator, enter your target amount, current balance, deadline, and interest rate (if applicable). Once you’ve entered that information, the calculator will instantly show your required monthly contribution.

1. Enter your savings goal: Type in the total amount you want to save.
2. Add your current savings: If you already have some money saved for this goal, enter it here. If not, just put $0.
3. Choose your deadline: Enter when you want to reach this goal in years or months.
4. Set your interest rate: If your savings account earns interest, add that percentage to see how your money grows.

The calculator does the math for you, helping to remove the guesswork from your savings plan.

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First, decide what you want to save for. Be as specific as possible – instead of “save more money,” define exactly what you’re working toward.

Breaking goals into short-term and long-term categories can help you prioritize and stay motivated:

• Short-term goals, which you can often achieve in one to three years, include building an emergency fund, paying off credit cards, saving for a car down payment, or clearing high-interest debt.
• Long-term goals, which often take three or more years, include growing retirement savings in an account like a 401(k) or IRA, funding a child’s education, paying off student loans, or building an investment portfolio.

When do you want to accomplish each savings goal? Setting a specific deadline keeps you accountable and prevents your goal from getting pushed aside.

Review each of your goals and assign a realistic timeframe. Stay flexible – you can always adjust your deadline if your circumstances change.

Choose where to keep your savings based on when you’ll need the money and how much interest you want to earn. There are several types of accounts to consider:

The right account type can help you increase your earnings while matching your access needs.

Review your monthly budget to determine how much you can save each month without cutting into essential expenses.

A good rule of thumb is to put 20% of your income toward savings. This aligns with the 50/30/20 rule, a budgeting method that divides your budget between needs, wants, and savings.

Once you have a clear picture of your monthly budget, calculating your savings amount is simple:

Write your savings goal and deadline.
Divide your savings goal by the number of months until your deadline.

This calculation shows how much you should save each month to reach your goal. If the amount seems too high, consider adjusting your deadline or finding ways to cut expenses.

Track your income and expenses to see exactly where your money goes and identify areas to cut back.

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One of the keys to successfully saving for a goal is tracking your progress consistently. There are several ways to do so, such as:

• Create a spreadsheet
• Use a savings planner
• Use a budgeting app

Pick a method that’s easy for you to stick to. You could also set up monthly automatic transfers to your savings account so you’re always contributing even if you forget to check in.

Periodically review and adjust your goals as needed. Life changes like a raise or an unexpected expense may require tweaking your timeline or target amount.

Set aside time each month to review your progress and make adjustments. Use our printable tracker to celebrate milestones along the way.

Sometimes the calculator gives you a monthly number that’s higher than your budget allows. Don’t panic – here’s how to adjust:

• Extend your deadline: Pushing your goal date back lowers your monthly savings amount.
• Start smaller: Save what you can now and increase the amount as your income grows.
• Review spending: Look for non-essential expenses you can pause temporarily.
• Find extra income: Consider a side gig or selling items you no longer need.

The most important thing is to get started, even if you can’t hit the perfect number right away.

Setting savings goals is an ongoing process that requires consistency and flexibility. Start with the calculator to get your monthly number, then adjust your plan as your life and income change. Every dollar you save moves you closer to your goal – celebrate that progress.

For additional guidance, check out our tips on how to set financial goals.