How to use the savings goal calculator

In order to estimate how long it will take to reach your savings goal, enter the following information into the calculator:

• Savings goal:Your desired savings target. 

• Starting balance:The amount of money you're starting with.

• Monthly contribution:How much you expect to contribute to your savings account each month. Note: This field is optional.

• APY:Your savings account's annual percentage yield, which represents how much interest you earn in a year when factoring in compound interest, expressed as a percentage.

• Time to grow:Your desired timeline for reaching your savings target. 

Interpreting your results

After filling out all of the fields, you'll see a breakdown of your results:

• Suggested/additional monthly contribution:This is the amount you should aim to contribute to your savings account each month to reach your savings goal in the desired time frame. 

• Projected balance:A visual representation of how you can expect your savings account balance to grow based on your starting balance, monthly contributions, and APY. 

What if I'm behind on my savings goal progress?

If you're not currently saving enough money each month to hit your target, don't worry. You may simply need to make some lifestyle changes to get back on track if you want to stick to your desired savings timeline. 

Take this as an opportunity to review your budget and see if there are any expenses you can scale back on or cut completely — even temporarily — so you can allocate a bit more money toward your savings account each month. You could also explore ways to increase your income such as picking up a side hustle or making the case for a raise at work. You might also consider shopping around for a better savings account that offers a higher APY and fewer fees to give your balance a boost. In many cases, changing your strategy can help you get back on track. 

How to reach your savings goal faster

Here are a few easy ways to shorten your savings timeline and reach your desired goal: 

Increase monthly contributions

Putting a little more money into your savings account each month can make all the difference. Contributing even a few extra dollars each month can help your balance grow and maximize interest compounding. So, as your income increases, do your best to avoid lifestyle inflation and instead increase your contributions.

Shop around for a better APY

Your account APY can make all the difference in how quickly your balance grows over time. For example, the average savings account rate is just 0.38% — but some of the best high-yield savings accounts pay upwards of 4% APY. Do some research to see if you're truly getting the most competitive rate and consider switching to a different savings account if needed. 

Avoid unnecessary withdrawals and fees

Dipping into your savings account not only reduces your overall balance, but it can also reduce your potential interest earnings. Of course, there are times when you need to dip into your savings to cover unexpected bills or major purchases. However, it's important to be cautious about withdrawing too much and stunting your potential growth.

The same goes for incurring fees; accounts that charge monthly maintenance fees or similar unnecessary fees can hold back your progress. And mismanaging your account can also result in penalties, such as low balance fees, overdraft fees, and more. Be sure you understand the terms of your account and the requirements that must be met to avoid fees.