Reach your savings goal

How much should I save each month?

To reach a savings goal, divide the target amount by the months until you need it, then adjust for interest earned. As an illustration with no starting balance and an unchanged 4.5% APY, a $60,000 house down payment in 5 years needs about $900/month, while a $10,000 emergency fund in 18 months needs about $540/month. Replace the illustrative APY with the current account disclosure; the calculator above handles the exact inputs.

Common savings goals

• Emergency fund: build a starter buffer, then work toward 3-6 months of essential expenses (or more when income is less predictable)
• House down payment: set the purchase-price percentage, closing-cost allowance and date you need the cash
• New car: include taxes, fees and the trade-in or deposit before choosing a monthly target
• Wedding: enter your budget and date, then test a contribution you can sustain

Where to keep it

For short-term goals (under 2 years), compare an appropriately insured savings account's current APY, access and fees. For medium-term goals (3-5 years), weigh cash, CDs and bond funds against volatility and the date you need the money. For longer horizons, a diversified investment plan may offer more growth but can lose value before the goal date.