How does compound interest affect my savings goal?

Compound interest means your savings earn interest on top of previously earned interest. Even a 5% annual return on $500/month savings can add tens of thousands of dollars over a decade compared to a simple savings account.

What is a realistic return rate to use?

For a high-yield savings account, use 4–5%. For a diversified investment portfolio, 7–8% is a common historical average. For cash kept at home, use 0%.

Savings Goal Calculator

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Savings Goal ($)*

Current Savings ($)

Monthly Contribution ($)

Expected Annual Return (%)

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How to use this calculator

Set your goal
Enter the total amount you want to save.
Enter current savings
Input any money you have already saved towards this goal.
Set monthly contribution
Enter how much you plan to save each month.
Add a return rate
If investing, enter your expected annual return.
Get your timeline
See exactly how many months until you reach your goal.

Frequently Asked Questions

: Compound interest means your savings earn interest on top of previously earned interest. Even a 5% annual return on $500/month savings can add tens of thousands of dollars over a decade compared to a simple savings account.
: For a high-yield savings account, use 4–5%. For a diversified investment portfolio, 7–8% is a common historical average. For cash kept at home, use 0%.

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How to use this calculator

Frequently Asked Questions

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