Set a target amount, tell the calculator what you already have and how much you can put aside each month, and it estimates how long you need — with or without interest compounding along the way.
Interest makes a visible difference on multi-year goals: the chart compares your deposited principal with the actual balance so you can see how much the interest contributes.
The estimate assumes a steady monthly deposit and a constant rate. If your goal is retirement rather than a fixed amount, the FIRE and Retirement Income calculators are built for that question.
Where the money sits should follow the horizon rather than the rate on offer. A goal under two years away belongs in cash regardless of what markets are doing, because there is no time to recover a fall before the money is needed; a goal a decade out can sensibly carry risk. The awkward middle — three to five years — has no clean answer, and the usual compromise is to hold the near part in cash and let the rest ride, shifting across as the date approaches rather than deciding once at the start.
Frequently asked questions
How much should I save each month?
Work backwards from the goal: divide the gap between your target and current savings by the months available, then trim it slightly for the interest earned along the way — which is exactly what this calculator does.
Does interest matter for short-term goals?
Under about two years, barely — your deposits do almost all the work. Over five or more years, compounding contributes a clearly visible share of the final amount.
Where should I keep money saved for a goal?
For goals within a few years, a high-interest savings account or term deposit protects the amount. Investing short-term money risks a downturn arriving exactly when you need to spend it.