Savings Goal Calculator

APR (annual percentage rate) is the nominal, stated interest rate before compounding is applied. APY (annual percentage yield) is the effective rate you actually earn in a year after compounding, so it's always equal to or higher than APR for the same account. Savings accounts and CDs are required to advertise APY so you can compare offers on equal footing, which is why this calculator asks for APY directly.

Because APY already reflects how often your bank compounds interest, you don't need to know or enter that compounding frequency yourself. The calculator converts your APY into the equivalent daily-compounding rate internally, matching how most savings accounts and money market accounts actually compound.

A high-yield savings account is a savings account, usually offered online, that pays a meaningfully higher APY than a typical brick-and-mortar bank's savings account while remaining federally insured (FDIC for banks, NCUA for credit unions) up to the standard limits. Funds stay liquid — you can typically withdraw at any time — which makes HYSAs a common home for a savings goal like this one.

A certificate of deposit (CD) locks in a fixed APY for a set term (e.g. 6 months to 5 years) in exchange for limited access to the money before maturity, usually with an early-withdrawal penalty. CDs can suit a goal with a known date, since the rate won't drop during the term, but you should compare the CD's term to your target date before committing funds.

The calculator tests contribution amounts and projects your balance forward using compound growth until it finds the smallest periodic contribution whose ending balance meets your goal by the target date, given your current savings and the APY you entered. It accounts for interest earned along the way, so as your balance grows, later interest does some of the work for you.

The calculator will say the goal isn't reachable only when even a very large contribution wouldn't get there in the time available, which is rare. More commonly, you'll just see a larger required contribution than expected; try a later target date, a higher APY account, or a lower goal.

More frequent contributions of the same total annual amount earn slightly more interest, because money reaches your account sooner and has more time to grow. The effect is usually small compared with the impact of APY and time, but the calculator models each frequency exactly so you can compare.

This calculator doesn't recommend specific products. In general, savings you might need on short notice, or before a firm date, are commonly kept somewhere liquid and insured, while money you're confident you won't need before a set date may earn a higher fixed rate in a CD. Compare the APY, liquidity, and insurance coverage of any account before choosing.

Deposits at FDIC-insured banks and NCUA-insured credit unions are insured up to $250,000 per depositor, per institution, per ownership category. That insurance covers the safety of your deposit — it doesn't guarantee any particular APY, which banks can change on non-CD accounts at any time.

The year-by-year balance is calculated exactly for your inputs. The fractional year (months) is estimated with straight-line interpolation within the year your balance crosses the goal, which is a close approximation since growth within a single year is close to linear at typical savings rates.