Making a goal stick
Set up an automatic transfer on payday for the monthly amount shown, so the money moves before you can spend it. Keep the savings in a separate account, and round the target up a little for price changes.
How it works
Your current savings grow at the rate you enter, and the calculator finds the fixed monthly deposit that closes the gap by your deadline. Interest is compounded monthly.
Tips to reach your goal faster
- Set up an automatic transfer on payday.
- Split a big goal into smaller milestones.
- Put windfalls like bonuses straight into the goal.
FAQ
Where should I keep short-term savings?
For goals within a few years, a high-interest savings account is common, because the money stays available and does not swing in value.
What rate should I use?
Use your savings account rate, or a conservative return if you invest. Use 0 for cash.
Does it account for inflation?
No. To plan in today's money, subtract expected inflation from the rate.