How much should I save each month to reach my goal?

The amount depends on your goal, timeline, and interest rate. A general rule is to save at least 20% of your after-tax income. Use our savings goal calculator to find the exact monthly contribution needed for your specific goal and timeline.

What is a high-yield savings account and how does it help?

A high-yield savings account (HYSA) offers significantly higher interest rates than traditional savings accounts, typically 4-5% APY in 2025-2026. This means your savings grow faster through compound interest. For example, $10,000 in a HYSA at 4.5% earns about $450 per year compared to just $5-10 in a regular savings account.

How do I set a SMART savings goal?

A SMART savings goal is Specific (exact dollar amount), Measurable (track progress monthly), Achievable (realistic given your income), Relevant (meaningful to your life), and Time-bound (set a deadline). For example: Save $15,000 for a vacation by December 2027 by contributing $500/month to a high-yield savings account.

What are the best strategies to save money faster?

Top strategies include: automate transfers on payday so you pay yourself first; use the 50/30/20 budget rule; cut subscriptions you don't use; reduce dining out; use cashback credit cards; sell unused items; pick up a side hustle; and channel windfalls (tax refunds, bonuses) directly into your savings goal.

Savings Goal Calculator

Q: Should I invest or save for my goal?

For short-term goals (under 3 years), keep money in a high-yield savings account or money market fund for safety. For medium-term goals (3-7 years), consider a mix of bonds and conservative investments. For long-term goals (7+ years), investing in a diversified portfolio of stocks and bonds typically provides better returns despite short-term volatility.

Find out exactly how long it takes to reach any savings goal — with growth projections, what-if scenarios, and actionable tips to get there faster.

Goal Type

Goal Amount

Typical down payment: $30,000 - $80,000

Current Savings

How much you've already saved toward this goal

Monthly Contribution: $500

$ / month

Annual Interest Rate (APY)

Current HYSA rates average 4-5%. Enter 0% for no interest.

Monthly Income (optional)

Shows your savings as a percentage of income

Your Savings Timeline

to reach your goal

Target Date -

Total Contributions $0

Interest Earned $0

Final Balance $0

Savings Rate -

Current Progress 0%

$0 $0

Milestones

Savings Growth Over Time

Month 1 -

Contributions Interest

What If You Saved More?

Create Account to Save

How to Set and Reach Your Savings Goals

Setting SMART Financial Goals

The most effective savings goals follow the SMART framework: Specific (know the exact dollar amount you need), Measurable (track your progress monthly), Achievable (set a contribution amount that fits your budget), Relevant (choose goals that genuinely matter to your life), and Time-bound (set a target date). Instead of saying "I want to save more," say "I will save $20,000 for a down payment by March 2028 by contributing $600/month to my HYSA."

The Power of Automated Savings

Research from behavioral economics shows that people who automate their savings are significantly more likely to reach their goals. Set up an automatic transfer from your checking account to your savings account on payday. This "pay yourself first" approach removes the temptation to spend money before saving it. Most banks let you schedule recurring transfers for free, and many allow you to create separate savings buckets for different goals.

High-Yield Savings Accounts (HYSA)

In 2025-2026, high-yield savings accounts offer 4-5% APY — roughly 10 times more than traditional bank savings accounts (0.01-0.50%). For a $50,000 goal, earning 4.5% instead of 0.5% means an extra $2,000+ in interest per year. HYSAs are FDIC-insured up to $250,000, making them one of the safest places to keep money you'll need within the next 1-5 years. Look for accounts with no minimum balance requirements and no monthly fees.

Tips to Reach Your Goal Faster

Channel windfalls: Tax refunds, work bonuses, and cash gifts can accelerate your progress by months.
Cut one recurring expense: Canceling a $50/month subscription saves $600/year toward your goal.
Use the 24-hour rule: Wait a day before non-essential purchases. Most impulse buys feel unnecessary after sleeping on them.
Round up spare change: Many apps round purchases to the nearest dollar and deposit the difference into savings.
Increase contributions with raises: Whenever you get a raise, boost your monthly savings by at least half the increase.
Try a no-spend challenge: One no-spend week per month could save $100-300 extra.

Frequently Asked Questions

The ideal monthly contribution depends on your goal amount, timeline, and interest rate. A widely recommended guideline is to save at least 20% of your after-tax income. Use the calculator above to experiment with different monthly amounts — you'll see instantly how each change affects your timeline. If the timeline feels too long, the "What If You Saved More?" section shows exactly how much faster you'd reach your goal with increased contributions.

A high-yield savings account (HYSA) offers significantly higher interest rates than traditional savings accounts — typically 4-5% APY in 2025-2026. This means your money grows faster through compound interest. For example, $10,000 in a HYSA at 4.5% earns about $450 per year compared to just $5-$10 in a regular savings account. HYSAs are FDIC-insured up to $250,000 and are ideal for short- to medium-term savings goals.

SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Instead of "save more money," a SMART goal would be: "Save $15,000 for a vacation to Europe by June 2028 by contributing $500/month to a high-yield savings account." This gives you a clear target, a way to track progress, a realistic plan, personal motivation, and a deadline to work toward. Our calculator helps you set the "Measurable" and "Time-bound" parts automatically.

It depends on your timeline. For short-term goals (under 3 years), stick with a high-yield savings account or money market fund — your money stays safe and accessible. For medium-term goals (3-7 years), consider a mix of bonds and conservative investments. For long-term goals (7+ years), a diversified portfolio of index funds typically provides better returns (historically 7-10% annually), despite short-term market volatility. Never invest money you'll need within 1-2 years in the stock market.

The top strategies include: (1) automate transfers on payday so you pay yourself first, (2) use the 50/30/20 budget rule, (3) cut subscriptions you don't use, (4) reduce dining out and cook at home more often, (5) use cashback credit cards for everyday purchases, (6) sell items you no longer need, (7) start a side hustle for extra income, and (8) channel all windfalls like tax refunds and bonuses directly into your savings goal.

Compound interest means you earn interest on both your original deposits and on previously earned interest. Over time, this creates exponential growth. For example, saving $500/month at 4.5% APY yields about $2,700 in interest over 5 years. But over 10 years, you'd earn about $12,400 — more than four times the interest, even though you only doubled the time. The longer your timeline, the more powerful the compounding effect becomes.