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Savings Goal Calculator

Reaching a $50,000 goal in 5 years with $5,000 already saved at a 4% return takes a deposit of $662.08 a month. The monthly saving required to hit a target is a future-value problem solved in reverse: grow what you already have to the deadline, subtract it from the goal, and find the level deposit whose compounded sum covers the rest.

Save monthly
$662.08
Total contributions
$39,725
Growth needed
$5,275
Months to goal
60
Save about $662/month to hit the goal
Reaches $50,000 in 5 years — a longer timeline lowers the monthly needed.
Inputs
The goal
Target amount
$
In how long?
years
Starting point
Have today
$
Assumption
Annual return
%
Stretching the deadline cuts the monthly
You need about $662/month to hit the goal in 5 years. Because contributions compound, adding even a year or two to the timeline lowers the required monthly noticeably.
Ask a follow-up
Uses your inputs above
$662.08 save monthly. Want to try a variation?

The math

Reviewed 2026
Formula
PMT = (FV − P(1+r)^n) · r / ((1+r)^n − 1)
PMT monthly · FV goal · P current · r monthly rate · n months
Compounded monthly

Related calculators

Example: how savings goal is calculated

Step-by-step with default inputs

Suppose you put the default values into Savings Goal Calculator:

Target amount
$50,000
Have today
$5,000
In how long?
5 years
Annual return
4%

Plug those into the formula PMT = (FV − P(1+r)^n) · r / ((1+r)^n − 1) and the result is:

Save monthly
$662.08

Monthly savings by time horizon

Other inputs held at their defaults
In how long?Save monthlyTotal contributions
3 years$1,161.91$41,829
5 years$662.08$39,725
10 years$288.94$34,672
15 years$166.19$29,915
20 years$106.02$25,446

How to calculate savings goal by hand

  1. Divide the annual return by 12 for the monthly rate r (4% → 0.3333%) and count the months: n = 5 × 12 = 60.
  2. Grow current savings to the deadline: $5,000 × (1 + r)^60 ≈ $6,105.
  3. Subtract from the goal to find what deposits must build: $50,000 − $6,105 = $43,895.
  4. Solve the annuity formula: PMT = $43,895 × r / ((1 + r)^60 − 1) ≈ $662.08 per month.

How does the savings goal calculator work?

The calculator inverts the future-value-of-an-annuity formula, the same method behind Bankrate's savings goal tool. The current balance is first compounded forward at the annual return divided by 12, becoming P(1+r)^n by the deadline. That future value is subtracted from the goal, and the annuity formula is solved for the payment that builds the remainder: PMT = (FV − P(1+r)^n) · r / ((1+r)^n − 1). If current savings alone would exceed the goal, the required deposit is zero. Deposits are assumed to land at the end of each month and the rate is held constant — real returns will wander around whatever average you enter.

References: Bankrate methodology.

Last reviewed July 2, 2026 · Editorial policy

Frequently asked questions

How much do I need to save monthly to reach $50,000 in 5 years?

$662.08 a month at a 4% annual return if you start with $5,000. With no starting balance it rises to about $754; at a 0% return it is simply the remaining $45,000 divided by 60 months, or $750.

Why does a higher return lower the required saving?

Two effects work together: the existing balance grows more before the deadline, and every deposit earns more between now and then. In the formula, the payment is divided by ((1 + r)^n − 1), which grows with the rate.

What does the 'growth needed' figure mean?

It is the slice of the goal that investment returns must supply rather than deposits: goal minus current savings minus all monthly contributions. At the defaults, about $5,275 of the $50,000 has to come from growth.

What does this calculator assume?

Compounded monthly See the math card above for the full list.

How accurate is this savings goal calculator?

The math is deterministic — the same inputs always produce the same output, and the formula is shown above. Accuracy of the answer for your situation depends on how well your inputs match reality and how well the formula models the question.

Why is my bank's number different?

Banks add fees, taxes, insurance, and product-specific terms that this calculator deliberately omits to keep the math transparent. Use this to sanity-check a quote, not to replace it.