"Big Purchase" Savings Calculator

Planning a big purchase like a car or down payment? Calculate how much you need to save each month to reach your goal by the deadline.

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Expected return on savings/investments.

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Enter your details and click Calculate.

Planning Your Big Purchase

How to Use This Calculator

This calculator helps you create a clear savings plan. It works by calculating the "PMT" (payment), a financial formula that determines the fixed monthly contribution required to reach a future value (your goal) from a present value (your current savings), given a specific interest rate and time period. Interested in how interest grows over time? Check out our Compound Interest Calculator.

  • Savings Goal Amount: This is your target. How much do you need to have saved for your down payment, new car, vacation, or other goal?
  • Current Savings: How much money you have saved for this goal already. Starting with $0 is perfectly fine!
  • Years Until Goal: The number of years you have to save. A longer timeline means your monthly contribution will be smaller and interest will help more.
  • Estimated Annual Return: The interest rate you expect to earn on your savings. This could be from a High-Yield Savings Account (HYSA) or a conservative investment.

Interpreting the Results

The main result, "Monthly Savings Needed," is your target. This is the amount you must set aside every month to hit your goal on time. The "Total Contributions" shows how much you'll have saved out-of-pocket, while "Total Interest Earned" shows how much your money grew on its own. Seeing that interest number can be a great motivator!

What if the Goal Seems Unreachable?

If the monthly savings number is too high, you have three main options:

  1. Extend Your Timeline: Can you wait 6 more months? Or another year? Adding more time is the most powerful way to reduce the monthly amount.
  2. Reduce Your Goal: Can the car be a *little* less expensive? Can you aim for a 15% down payment instead of 20%?
  3. Increase Your Current Savings: Can you sell something or use a bonus to make a one-time lump sum deposit right now?

Use this calculator to test different scenarios until you find a plan that works for you. If you are wondering how many work hours this purchase represents, try our "Time to Earn" Calculator.

💡 Investing the savings?

Compare Dollar Cost Averaging vs. Lump Sum investing.

DCA vs. Lump Sum →