Required Savings Calculator
Find out exactly how much to save each month to hit your financial goal.
Savings Goal
You need to save
$3,524/month
$42,288/year
Inflation-Adj Goal
$3,140,667
Total Contributions
$1,107,200
Growth (Interest)
$2,033,467
Growth Timeline
Savings Rate by Income
Green = manageable, Amber = aggressive, Red = may need to adjust goal or timeline
Savings Strategies
- You need to save beyond the 401(k) limit. After maxing your 401(k) ($23,500), put the remaining $18,788/year into an IRA ($7,000) and taxable brokerage account.
- Compound growth contributes 65% of your goal. Starting early makes a massive difference.
Assumes consistent monthly contributions and annual compounding. Actual returns vary. Real return after inflation: 3.9%.
The Power of Starting Early
A 25-year-old saving $500/month at 7% annual return reaches $1.2 million by age 65. A 35-year-old saving the same amount reaches only $567,000 — less than half. That 10-year head start earns an extra $633,000, almost entirely from compound growth. The most powerful variable in this calculator isn't the return rate or the monthly amount — it's time.
Monthly Savings Needed by Goal
| Goal | Target Amount | Timeline | Monthly Needed* |
|---|---|---|---|
| Emergency Fund | $20,000–$30,000 | 1–2 years | $850–$1,250 |
| House Down Payment | $60,000–$100,000 | 3–5 years | $900–$1,600 |
| New Car (Cash) | $25,000–$40,000 | 2–3 years | $700–$1,100 |
| College Fund (per child) | $150,000–$250,000 | 18 years | $400–$700 |
| Early Retirement (50) | $1,500,000 | 20–25 years | $1,900–$2,800 |
| Standard Retirement (65) | $1,500,000 | 30–40 years | $600–$1,200 |
*Assumes 7% return for retirement/education, 4.5% for short-term goals, starting from $0.
Recommended Savings Rates by Age
| Age Range | Savings Rate | Focus |
|---|---|---|
| 20–25 | 10–15% of income | Build emergency fund + start 401(k) |
| 25–35 | 15–20% of income | Max retirement accounts + save for home |
| 35–45 | 20–25% of income | Catch-up if behind + kids' college fund |
| 45–55 | 25–30% of income | Aggressive retirement push + catch-up contributions |
| 55–65 | 30%+ of income | Final sprint + reduce expenses pre-retirement |
Where to Put Your Savings
Match your savings vehicle to your timeline. For goals under 3 years, use high-yield savings accounts (4.5%+ in 2026) or CDs — you can't afford a stock market downturn. For 3–7 year goals, consider a balanced portfolio (60% stocks, 40% bonds). For goals 7+ years out, a growth portfolio (80–100% stocks) historically delivers 7–10% annual returns and recovers from any downturn within that timeframe.
Frequently Asked Questions
What if I can't save the recommended amount?
Start with whatever you can — even $50/month. The calculator shows the ideal amount, but any savings is better than none. Automate transfers on payday so you save before spending. When you get a raise, allocate at least half of the increase to savings. Review subscriptions and discretionary spending for quick wins. Most people can find $200–$500/month without major lifestyle changes.
Should I pay off debt or save?
Both. First, save a $1,000 mini emergency fund. Then attack high-interest debt (credit cards at 20%+ APR) aggressively — no investment reliably beats that. Once high-interest debt is gone, split your money: save 15% for retirement while paying minimums plus extra on remaining debt. The math: if your debt costs 6% and investments earn 7%, you gain more by investing — but the guaranteed 6% "return" from debt payoff has zero risk.
See also: FIRE Calculator and 401(k) Calculator.