Savings Calculator

The standard guideline is to save at least 20% of your income (the 50/30/20 rule). For a specific goal, divide the amount needed by the months available. Emergency funds typically need 3–6 months of expenses.

For short-term goals (under 2 years), rate matters less. On $500/month for 1 year, the difference between 0% and 5% APY is only about $135. For longer goals, higher-yield accounts make a significant difference.

A high-yield savings account (HYSA) pays significantly more interest than a standard savings account. As of 2024–2025, top HYSAs pay 4–5% APY vs. the national average of ~0.46%. They are FDIC-insured and safe.

If debt interest > savings interest, paying debt first wins mathematically. But most experts recommend keeping a small emergency fund ($1,000–$3,000) while aggressively paying high-interest debt, then building 3–6 months after debt is paid.

Set up automatic transfers from your checking to savings account on payday. Treat savings like a bill. Many banks let you split direct deposits — send 20% straight to savings before it even hits your checking account.