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Savings Goal Calculator

Work out how much to save each month to reach a goal by a date, or how long it will take at the amount you can afford, with interest from a high-interest savings account or TFSA.

$
$
years
months
More options· Interest at 3% a year
%

Your savings account’s rate, before tax

Save each month

$474

To reach $20,000 in 3 years, with interest at 3% a year

A week
$109
You pay in
$17,045
Interest
$955

What this means

Set up an automatic transfer to a separate savings account on payday, so the money is put aside before you can spend it. A higher rate helps, but the amount you save each month matters most.

Money you’ll need within about five years is safest in savings, where its value can’t fall. For goals further away, investing may grow faster, but it can drop just when you need it.

Next step

Your plan

AfterPaid inInterestSaved
Year 1$5,682$140$7,821
Year 2$11,363$456$13,820
Year 3$17,045$955$20,000

Towards your goal

Your savings over time
$25,000$12,500$0
123
Saved so farYou pay inInterestGoal
Assumptions in this estimate
  • Savings are added at the end of each month, and interest at 3% a year is added monthly and stays the same throughout. Savings rates change, so check your plan now and then.
  • Interest is shown before tax. Our savings interest calculator works out the tax on it.
  • The goal is in today’s money. If it’s something whose price rises, like a home deposit, aim a little higher.
Spotted a mistake? Tell us

How the calculator works

  1. Your goal and what you’ve saved so far.
  2. How much each month: for a deadline, it works out the monthly amount that reaches your goal, with interest added each month.
  3. How long: for the amount you can save, it works out how many months it will take.
  4. Interest: at the yearly rate you enter, before tax. It starts at a typical high-interest savings rate: use your own bank’s.

Example

To reach $20,000 in 3 years with $2,000 saved at 3%, save about $474 a month, or $109 a week. You’d pay in $17,045 and earn $955 of interest. If you can only save $350 a month, you’d get there in 4 years.

Tips for reaching a savings goal

  • Automate it: a transfer on payday means the money is saved before you can spend it.
  • Use your TFSA: interest, and growth, in a TFSA is tax-free, and you can take it out at any time.
  • Start with an emergency fund of three to six months of essential costs, so a surprise bill doesn’t end up on a credit card.
  • Check your rate: big-bank savings accounts often pay far less than online banks. Compare with our savings interest calculator.

Learn more

See our emergency fund guide, the FHSA calculator for a first home, and the budget calculator to find money to save.

Last updated

Frequently asked questions

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

Take what you still need, spread it over the months until you need it, and let interest cover a little of it. To reach $20,000 in 3 years with $2,000 saved at 3%, you need to save about $474 a month.

Where should I keep money for a savings goal?

For goals within about five years, a high-interest savings account or GIC, where the value can’t fall. Holding it in a TFSA means the interest isn’t taxed. Deposits at CDIC members are protected up to $100,000 per eligible category, per member institution.

Is interest on savings taxed?

Yes, as income at your marginal rate, unless the money is in a TFSA, FHSA or RRSP. Your bank sends a T5 slip when you earn $50 or more in a year.

Should I save or invest for a goal?

Save for goals you’ll need within about five years, like an emergency fund, a car or a down payment. For goals 10 or more years away, investing usually grows faster, though it can fall in the short term.

How do I save for a down payment?

If you’ve never owned a home, an FHSA is hard to beat: up to $8,000 a year is tax-deductible going in and tax-free coming out for your first home. Our FHSA calculator shows what it adds up to.