Question 1

Does this account for interest on savings?

Accepted Answer

Yes. Enter your expected interest rate (your savings account APY or investment return) to see how interest accelerates reaching your goal.

Question 2

What if I already have some money saved?

Accepted Answer

Enter your current savings in the "Already saved" field. The calculator subtracts this from your goal and only calculates what you still need.

Question 3

What interest rate should I use?

Accepted Answer

For a high-yield savings account, use your current APY (typically 4-5% in 2024). For an investment account, 7% is a common long-term estimate for a diversified portfolio.

Question 4

Can I see how long it takes at a fixed monthly amount?

Accepted Answer

Yes. Enter your planned monthly saving in the second section and it calculates exactly how many years and months it will take to reach your goal.