Savings Goal Calculator

Match the rate to where the money is held. High-yield savings: 4–5%. Money market: 4–5%. CDs: 4–5% for 1-year, 4–5% for 5-year. Conservative bond fund: 3–5%. Balanced 60/40 portfolio: 5–7% long-term average. All-equity index fund: 7–10% long-term average with 30–50% drawdowns in bad years. Short timeframes (under 5 years) usually warrant 3–5% to stay realistic.

Each period your balance earns a return, and next period that return also earns a return. Over 30 years at 7%, the same monthly contribution produces roughly 3.5× more wealth than at 3% — most of the difference is compounding, not the principal. For long horizons (retirement), the contribution rate matters early and the return rate matters late. For short horizons, the contribution rate dominates.

Money you need within 1–3 years should stay in a high-yield savings account or short-term CDs — the variance of equity markets is too high for short horizons. Money you do not need for 5+ years generally belongs in low-cost index funds, where the long-term return premium compounds. The boundary is fuzzy; many people split intermediate-term money 50/50.

This calculator does not adjust for inflation. To get a 'real' (purchasing-power) projection, subtract roughly 2–3% from the return rate to approximate long-run inflation. If you enter 7% as your return rate, your real return is closer to 4–5%. Inflation also affects the goal amount — a $50,000 goal today may need to be $75,000 in 20 years to buy the same things.

Yes — and most savers do. This tool assumes a constant contribution for simplicity, but a more realistic plan increases the monthly amount each time you get a raise. A common rule: save half of every raise. The marginal contribution still feels like 'extra' rather than a cut, but the compound effect over a career is large.