A savings goal calculator is a tool that helps you determine how long it will take to reach a financial goal based on your initial savings, monthly contributions, and expected interest rate. It provides a timeline and visual representation of your savings growth over time.

The calculator uses compound interest formulas to project the growth of your savings over time. It takes into account your initial savings amount, regular monthly contributions, and the annual interest rate you expect to earn. The results show how your savings will grow each year until you reach your goal.

This calculator compounds interest monthly, which means that interest is calculated and added to your savings balance each month. This allows your savings to grow faster compared to annual compounding, as you earn interest on previously accumulated interest.

Yes, this calculator can be used for retirement planning as well as other savings goals like buying a house, saving for education, or building an emergency fund. Simply input your target retirement savings amount, current savings, expected monthly contributions, and estimated annual return rate.

Interest rates vary depending on the type of savings vehicle. Traditional savings accounts typically offer 0.5% to 2%, while high-yield savings accounts can offer 2% to 4%. Investment accounts may average 5% to 7% or more over the long term, but come with greater risk. Consider your risk tolerance when selecting an interest rate for calculations.