Saving for a specific goal is easier when you can see the finish line. Automate a transfer on payday, and keep short-term goal money somewhere safe like a high-yield savings account.
How to use the Dream Come True Calculator
- Price of your dream
- Current savings
- Monthly saving
- Annual interest rate
- Target time
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the price of your dream, what you have saved, how much you save each month, the interest rate and, optionally, a target time.
Tips
- Use your real spending from bank statements rather than guesses.
- Automate savings so they happen before you spend.
- Revisit your plan once a year or after any big life change.
- Keep an emergency fund before investing for long-term goals.
Common mistakes to avoid
- Underestimating irregular expenses such as car repairs, gifts and annual bills.
- Ignoring inflation for long-term goals.
- Taking on high-interest debt to fund wants.
Inputs explained
| Field | What to enter |
|---|---|
| Price of your dream | Amount in your currency |
| Current savings | Amount in your currency |
| Monthly saving | Amount in your currency |
| Annual interest rate | In % |
| Target time | In months |
What each result means
- In years = [Time needed]÷12
- Interest earned = [Price of your dream] – [Current savings] – [Monthly saving]×[Time needed]
Example values
How the main result changes when Price of your dream changes and everything else stays at the example values above:
| Price of your dream | Time needed (months) |
|---|---|
| 7,500 | 13.3 |
| 11,250 | 22 |
| 15,000 | 30.4 |
| 18,750 | 38.7 |
| 22,500 | 46.7 |
| 30,000 | 62.1 |
Formula
Months to goal = log((goal + d/i) ÷ (savings + d/i)) ÷ log(1 + i)Monthly saving for a deadline = (goal − savings × (1 + i)^n) × i ÷ ((1 + i)^n − 1)Worked example
Inputs — Price of your dream: $15,000; Current savings: $2,000; Monthly saving: $400; Annual interest rate: 4 %; Target time: 24 months.
Results — Time needed = 30.4 months; In years = 2.5; Interest earned = $829.31; Monthly saving needed for the target time = $514.52.
Frequently asked questions
How can I reach my savings goal faster?
Increase the monthly amount, add windfalls and earn more interest.
Where should I keep savings for a goal?
A high-yield savings account or CDs for goals under ~3 years.
Should I invest for a short-term goal?
Generally not – markets can fall just when you need the money.
What formula does the Dream Come True Calculator use?
Months to goal = log((goal + d/i) ÷ (savings + d/i)) ÷ log(1 + i).