The short answer
- To grow $2,000 into a $15,000 emergency fund in a year at 4%, save about $1,057 a month.
- Saving $500 a month instead, the same goal takes 25 months.
- The best online savings accounts paid around 4% in September 2026; the national average was about 0.38%.
- Keep goal money in an insured savings account, money market account or CD, not in stocks.
How the calculator works
You enter your goal, what you have already saved and the interest rate. The calculator grows your current savings at that rate, works out what is still missing, and then finds the monthly deposit that fills the gap, allowing for the interest each deposit earns. Interest is added monthly at a twelfth of the yearly rate, and deposits go in at the end of each month.
Because interest does part of the work, you need to deposit a little less than the gap divided by the months. The longer the time and the higher the rate, the bigger interest’s share.
Two ways to plan
- You enter
- Goal, savings, rate, months
- You get
- The monthly amount
- Best for
- Fixed dates: a wedding, a move, tuition
- You enter
- Goal, savings, rate, monthly saving
- You get
- How long it takes
- Best for
- Open goals: an emergency fund, a car
Example: an emergency fund
- Still to find$13,000
- Monthly deposit at 4%$1,056.95
- Monthly deposit at 0.38%$1,080.81
Over a single year, interest makes only a small difference: about $24 a month. If you can save $500 a month instead, you reach $15,000 in 25 months at 4%, or 26 months at 0.38%.
How big an emergency fund should be
The usual advice is three to six months of essential spending: rent or mortgage, food, utilities, insurance, transport and minimum debt payments. On essentials of $2,500 a month, that is $7,500 to $15,000. Aim higher if you are self-employed, have one income, or work in an industry with frequent layoffs.
Start small
The Consumer Financial Protection Bureau suggests building savings a little at a time. Even a few hundred dollars can stop a car repair or a medical bill from going on a credit card. Set a first target, such as $1,000, then build toward the full amount.
Example: a down payment
- Monthly deposit at 4%$1,276.20
- Monthly deposit at 0.38%$1,378.04
- Your deposits over 3 years at 4%$45,943
- Interest earned at 4%$4,057
A 20% down payment avoids private mortgage insurance on a conventional loan. Many buyers put down less, but remember closing costs too, often 2% to 5% of the price. If you can put aside $1,000 a month instead, the $60,000 takes 45 months at 4%. See what price fits your income with our home affordability calculator.
A car, a vacation and other goals
| Goal | Already saved | Months | Save each month |
|---|---|---|---|
| Vacation: $3,000 | $0 | 10 | $295.53 |
| Emergency fund: $15,000 | $2,000 | 12 | $1,056.95 |
| Car: $25,000 | $5,000 | 24 | $785.17 |
| Down payment: $60,000 | $10,000 | 36 | $1,276.20 |
Paying cash for a car, or making a bigger down payment, means borrowing less and paying less interest; our auto loan calculator shows the difference.
How the deadline changes the amount
Doubling the time more than halves the monthly amount, because interest has longer to work. If the number looks impossible, move the deadline before you give up on the goal.
High-yield savings rates in 2026
The FDIC publishes a national average rate for savings accounts each month. It was about 0.38% through mid-2026, because many large banks pay very little. Online banks and credit unions often pay far more: the best high-yield savings accounts paid around 4% APY in September 2026.
On $10,000 for a year, 0.38% earns about $38 and 4% about $407. Savings rates are variable and tend to follow the Federal Reserve’s interest rate decisions, so the rate you get today may change. The calculator keeps it fixed. See how interest builds over longer periods with our compound interest calculator.
Where to keep goal money
- High-yield savings account: variable rate, access at any time. Good for emergency funds.
- Money market account: similar to savings, sometimes with checks or a debit card.
- Certificate of deposit (CD): fixed rate for a fixed term; an early withdrawal penalty if you take money out early. Good when you know the date. Try our CD calculator.
- Treasury bills: short-term US government debt; interest is exempt from state income tax.
For a goal within about five years, avoid putting the money in stocks. A market fall just before you need it could leave you short, and there may not be time to recover.
Deposit insurance
Deposits at FDIC-insured banks are protected up to $250,000 per depositor, per insured bank, for each account ownership category, such as single and joint accounts. Credit union deposits have the same $250,000 protection from the NCUA. Check that an online bank is insured, or that a fintech app holds your money at an insured partner bank, before you open an account.
Tax on interest
Interest from savings accounts, money market accounts and CDs is taxable income in the year it is paid, at your ordinary income tax rate. Your bank sends Form 1099-INT if you earn $10 or more in a year. The calculator doesn’t take tax off, so in the 22% bracket you would keep about 78% of the interest shown.
Make it automatic
Set up an automatic transfer to your savings on payday, so the money moves before you can spend it. Many employers can split your direct deposit between two accounts. Name the account after the goal; people tend to leave money alone when it has a clear purpose. Put windfalls such as tax refunds and bonuses straight into the goal to get there sooner.
Saving for several goals
A common order is:
- A starter emergency fund.
- Enough in your 401(k) to get the full employer match.
- Pay off high-interest debt such as credit cards.
- Build the full emergency fund.
- Save for medium-term goals, such as a home or car, while saving more for retirement.
Run the calculator once per goal and add up the monthly amounts to see whether the plan fits your budget.
Saving vs paying off debt
Credit cards often charge 20% or more, far above what savings earn. Once you have a starter emergency fund, extra money usually does more good paying down that debt. Our debt payoff calculator compares the snowball and avalanche methods.
When a goal is years away
For goals more than about five years away, such as retirement, investing can make sense because there is time to ride out market falls. The retirement calculator is built for that. For college saving, look at a 529 plan, which grows tax-free when used for qualified education costs.
Common mistakes
- Keeping savings in a checking account or a savings account paying close to nothing.
- Setting a deadline that makes the monthly amount unrealistic, then giving up.
- Dipping into goal money for everyday spending.
- Forgetting extra costs, such as closing costs on a home or sales tax and fees on a car.
- Investing short-term money in stocks.
Sinking funds for yearly bills
A sinking fund is a small savings goal for a bill you know is coming: car insurance, holiday gifts, property tax, a vet bill. Saving $1,200 for an insurance bill due in 12 months at 4% takes about $98.18 a month; $1,000 for the holidays in 11 months takes about $89.40. Spreading these costs out stops them landing on a credit card and keeps your emergency fund for real emergencies.
Checking your progress
Check your balance against the chart every few months. If you fall behind, you have three choices: save a little more each month, push the deadline back, or lower the goal. If a rate change or a windfall puts you ahead, you could reach the goal early or move the extra to your next goal. Copy the calculator’s link to save your plan and come back to it.
Key numbers
| Item | Figure |
|---|---|
| Emergency fund guide | 3 to 6 months of essential spending |
| FDIC national average savings rate, mid-2026 | About 0.38% |
| Top high-yield savings rates, September 2026 | Around 4% APY |
| FDIC and NCUA insurance | $250,000 per depositor, per institution, per category |
| Form 1099-INT threshold | $10 of interest |
| Down payment to avoid PMI (conventional loan) | 20% |