Should I invest my savings or keep them in a bank account?

It depends on your time horizon. For goals less than 2-3 years away, a high-yield savings account or CD is safest. For goals 5+ years away, investing in a diversified portfolio may yield higher returns but comes with short-term volatility.

Savings Planner

Savings Goal Calculator

Find out exactly how long it takes to reach your savings goal — and how much faster you'll get there with investment returns.

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Set Your Goal

Enter your target, savings, and contributions

Savings Goal

Current Savings

Monthly Contribution $500

Expected Annual Return (savings/investment rate) 4.0%

Time to Reach Your Goal

3 years, 7 months

You'll reach your goal by September 2029

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Progress to Goal

Your current savings vs. target

$2,000 $25,000

With Returns
3y 7m
Interest earned: $1,840

Without Returns

3y 10m

Pure savings only

🚀 Returns save you 3 months!

Total Contributed

$23,000

Interest Earned

$1,840

Goal Date

Sep 2029

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Growth Projection

Savings trajectory toward your goal

With returns

Without returns

Goal target

How to Use the Savings Goal Calculator

Our free savings goal calculator helps you plan your financial future by showing exactly how long it will take to reach any savings target. Whether you're saving for a down payment on a house, building an emergency fund, planning a dream vacation, or setting aside money for a major purchase, this tool gives you a clear roadmap to your goal.

Simply enter your target savings amount, how much you currently have saved, your planned monthly contribution, and the expected annual return on your savings or investments. The calculator instantly projects your timeline and shows you how compound returns can accelerate your progress.

Understanding Your Results

The savings goal calculator provides several key insights to help you plan effectively:

Time to goal: The total number of months and years before you reach your savings target, factoring in both regular contributions and investment returns.
With vs. without returns: See the dramatic impact of earning returns on your savings. Even a modest 3-4% annual return in a high-yield savings account (HYSA) can shave months off your timeline.
Progress bar: Visualize how far along you already are. If you have existing savings, you may be closer to your goal than you think.
Growth chart: The projection chart shows your savings trajectory over time, with the goal target line clearly marked so you can see exactly when the two lines meet.

Choosing the Right Return Rate

The expected annual return rate you select significantly affects your results. Here are typical return benchmarks to guide your choice:

0%: Cash under the mattress — no growth at all.
1-2%: Traditional savings accounts at major banks.
4-5%: High-yield savings accounts or money market funds — great for short-term goals.
7-10%: Diversified stock market investments (S&P 500 historical average) — better for goals 5+ years away.
10%+: Aggressive growth investing — higher risk, suitable for long time horizons.

For short-term goals (under 2 years), consider keeping your return rate conservative at 4-5% since you won't want to expose those funds to stock market volatility. For longer-term goals, a higher rate reflecting equity market returns may be appropriate.

Tips to Reach Your Goal Faster

If your projected timeline feels too long, there are practical strategies to speed things up. Increasing your monthly contribution — even by a small amount — has the biggest impact. Automating transfers to your savings account on payday ensures consistency. Looking for higher-yield accounts or low-cost index funds can boost your returns. And reducing discretionary spending by even 5-10% can free up additional savings each month.

Consider using the "pay yourself first" method: decide on your savings amount before budgeting for other expenses. Many financial experts recommend saving at least 20% of your after-tax income, though any amount is better than nothing. The key is consistency — regular contributions over time, combined with compound returns, create surprisingly powerful results.

Frequently Asked Questions

The calculator provides estimates based on consistent monthly contributions and a fixed annual return rate. In practice, returns vary month to month, especially with market-based investments. For savings accounts with fixed APYs, the projections are quite accurate. For investment-based goals, treat the results as a reasonable estimate rather than a guarantee.

As of 2024-2025, many high-yield savings accounts offer between 4% and 5% APY. These rates can change over time as the Federal Reserve adjusts interest rates. Use the current rate offered by your bank for the most accurate projection, and keep in mind that rates may decrease in the future.

It depends on your time horizon. For goals less than 2-3 years away, a high-yield savings account or CD is safest — your principal is protected. For goals 5+ years away, investing in a diversified portfolio may yield higher returns but comes with short-term volatility. Never invest money you'll need soon in the stock market.

This calculator uses nominal returns (before inflation). If you want to account for inflation, subtract the expected inflation rate (typically 2-3%) from your return rate. For example, if you expect 7% returns and 3% inflation, use 4% as your "real" return rate for a more conservative estimate.

This calculator assumes a fixed monthly contribution for simplicity. In real life, you can absolutely increase contributions as your income grows. Many people follow the strategy of increasing savings by at least half of every raise they receive. Revisit this calculator periodically to update your numbers and track your progress.

This calculator is for educational purposes only. Results are estimates and should not be considered financial advice. Consult a qualified financial advisor for personalized guidance.