Should I count interest when saving for a short-term goal?

For goals within a year or two, interest matters far less than the amount you set aside, and money you will need soon is usually kept somewhere stable rather than invested. Enter a conservative rate, or zero, for short horizons.

Calculator

Savings Goal Calculator

Set a target amount and a date, and see the monthly saving required — with or without interest on the balance along the way.

Save each month

$499.77

for 24 months to reach $15,000

Total you deposit

$11,994

plus the $2,500 you already have

Interest earned

$506

at 3% APY over 24 months

How the goal gets funded

Already saved$2,500 · 17%
New deposits$11,994 · 80%
Interest$506 · 3%

Money needed within a year or two is usually kept somewhere stable, where the deposit amount matters far more than the interest rate.

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