Solve for the interest rate required to grow savings from a starting amount to a target balance within a chosen timeframe.
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Savings Planning
Enter your current savings, target amount, and timeframe to find the annual interest rate required to close the gap through compound interest alone.
This calculator reverse-engineers the compound interest formula to solve for the rate. Given a present value, future value, and time period, it calculates the annual rate that makes the two values equal under a chosen compounding frequency.
Algebraic rearrangement of the compound interest formula.
r = n × ((FV/PV)^(1/(n×t)) − 1)
FV = target, PV = current savings, n = compounding periods per year, t = years.
Current savings 10,000, target 15,000, 5 years, monthly compounding. Required annual rate ≈ 8.12%.
Assumes no additional contributions — growth comes only from interest. Does not account for taxes on interest income or inflation eroding purchasing power. If the required rate exceeds available savings account rates, the goal may require additional contributions.
Frequently asked questions
If the calculator returns a rate above what savings accounts or CDs offer (typically 4–6%), you’ll need to either extend the timeline, increase the starting amount, or make regular additional contributions.
The difference between annual and monthly compounding is modest for typical savings rates. At 5% for 10 years, monthly compounding adds about 0.12% to the effective annual rate compared to annual compounding.
This calculator assumes a single initial deposit. For regular contributions, use a future value or SIP calculator which accounts for periodic additions.
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