How much to save a month to reach $50,000 in 8 years (house deposit)
To reach $50,000 in 8 years at 4.5% interest, starting with $5,000, save $371.55 a month. You pay in $40,668 and interest adds $9,332.
Free, runs in your browser, nothing is sent anywhere. Move the sliders to try your own numbers.
The numbers for these inputs
| Year | Paid in | Interest so far | Balance |
|---|---|---|---|
| 1 | $9,459 | $323 | $9,781 |
| 2 | $13,917 | $865 | $14,782 |
| 3 | $18,376 | $1,638 | $20,013 |
| 4 | $22,834 | $2,650 | $25,484 |
| 5 | $27,293 | $3,914 | $31,207 |
| 6 | $31,751 | $5,441 | $37,192 |
| 7 | $36,210 | $7,242 | $43,452 |
| 8 | $40,668 | $9,332 | $50,000 |
How it works
Money already saved keeps growing at the interest rate. The calculator works out what that part will be worth at the end, and the rest of the goal has to come from monthly deposits.
Each deposit also earns interest from the month it is made, so the monthly amount is lower than goal / months. It uses the standard annuity formula: deposit = missing amount x r / ((1 + r)^n - 1), with r the monthly rate and n the number of months.
The result assumes a fixed rate, deposits at the end of each month, and no tax or fees. A real account's rate can change; check it before relying on the date.
Common mistakes
- Ignoring interest completely and just dividing the goal by the months, which makes you save more than needed.
- Counting on a high rate: use the rate your account pays today, not the best one you have seen.
- Setting the date too close: halving the time roughly doubles the monthly amount.
- Forgetting that the target loses buying power if prices rise before you buy.
Questions
How much do I need to save each month for $50,000?
$371.55 a month for 96 months, at 4.5% a year.
How much of the goal is interest?
$9,332 of it. The rest, $40,668, is money you pay in (including what you have saved already).
What if I saved for longer?
Every extra year lowers the monthly amount and raises the share that comes from interest. Move the years slider to compare.
What if the interest rate is lower?
Set it to 0% to see the plain division; the difference between that and the result is the value of the interest.
Is the interest taxed?
The calculator does not include tax. In many countries savings interest is taxable above an allowance, so the real result can be a little lower.
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- How much to save a month to reach $20,000 in 5 years (house deposit)
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- How much to save a month to reach $100,000 in 10 years (down payment)
- How much to save a month to reach $30,000 in 15 years (college fund)
- How much to save a month to reach $1,000,000 in 30 years (million)