Dream Come True Calculator
Calculate how long it takes to save for your dreams with compound interest
Calculate Time to Achieve Your Dream
Total cost of what you want to buy or achieve
Amount you already have saved toward this goal
Amount you can save each month toward this goal
Annual interest rate on your savings account or investments
Time to Achieve Your Dream
Savings Breakdown
Formula used: T = log((P + M/R) / (M/R + I)) / log(1 + R)
Where: P = Dream cost, M = Monthly savings, I = Initial savings, R = Monthly interest rate
Monthly rate: 0.417% (5% annually)
What if scenarios
Progress Analysis
Example: New Car
Dream Car Goal
Car price: $33,000
Current savings: $5,000
Monthly savings: $1,500
Interest rate: 5% annually
Results
Time needed: ~18 months
Total contributions: $27,000
Interest earned: ~$1,000
Total at goal: $33,000
4 Steps to Success
Right Mindset
Set realistic, specific goals
Build Strategy
Define cost, current savings, monthly amount
Put Money to Work
Use savings accounts or investments
Calculate Time
Know exactly when you'll reach your goal
Success Tips
Make goals specific and measurable
Automate your savings to stay consistent
Track expenses to find extra savings
Use high-yield savings accounts
Review and adjust your plan monthly
Consider increasing income sources
Understanding Dream Savings Calculations
The Power of Compound Interest
When you save money in an interest-bearing account, you earn money not just on your initial savings and monthly contributions, but also on the interest that accumulates. This is called compound interest, and it can significantly accelerate your journey to your dreams.
Formula Explanation
T = log((P + M/R) / (M/R + I)) / log(1 + R)
- T: Time needed in months
- P: Price tag on your dream
- M: Monthly savings amount
- I: Initial savings balance
- R: Monthly interest rate
Maximizing Your Savings
There are several strategies to reach your goals faster. The most obvious is to save more each month, but you can also optimize by finding better interest rates, reducing the cost of your dream, or finding additional income sources.
Investment Options
- Savings Account: Low risk, guaranteed returns (1-2%)
- CDs: Higher rates, but money is locked in (2-4%)
- Bonds: Government or corporate, moderate risk (3-6%)
- Index Funds: Stock market, higher risk/reward (7-10%)
- High-Yield Savings: Online banks, better rates (3-5%)
Risk Warning: Higher returns usually mean higher risk. Choose investments that match your timeline and risk tolerance.
Popular Dreams & Typical Costs
Short-term Goals
- • New smartphone: $800-$1,200
- • Weekend getaway: $500-$1,500
- • Gaming console: $300-$500
- • Nice watch: $200-$2,000
Medium-term Goals
- • Vacation abroad: $3,000-$8,000
- • New car: $20,000-$50,000
- • Wedding: $15,000-$35,000
- • Home renovation: $10,000-$50,000
Long-term Goals
- • House down payment: $50,000-$150,000
- • Child's college fund: $100,000-$200,000
- • Retirement fund: $500,000-$2,000,000
- • Starting a business: $25,000-$500,000