Savings Goal Calculator
Find out how much to set aside each month to hit your savings target.
How to use the Savings Goal Calculator
- Enter your savings goal.
- Enter how long you have to reach it.
- Enter the interest rate your savings earn.
- See the monthly amount needed.
PMT = FV × (r/12) ÷ ((1 + r/12)^(months) − 1)
About the Savings Goal Calculator
This calculator works backwards from a target. Given the amount you want, the number of years and the rate your savings earn, it solves the future-value-of-an-annuity formula for the deposit: PMT = FV × (r/12) ÷ ((1 + r/12)^n − 1), where n is the number of months. It shows the monthly deposit needed, the total you would put in yourself, and how much of the goal interest covers. Enter a rate of 0 and it simply divides the goal by the number of months.
Splitting the deposit from the interest is the useful part: it shows how much of the target your own money has to carry, and how sensitive that is to the timeframe. Lengthening the term usually moves the monthly figure more than a small change in rate does.
The assumptions matter. It starts from zero — there is no field for money you already have, so the figure is the deposit needed to build the whole target from nothing. To adjust, grow your existing balance forward with the compound interest calculator and subtract that future value from your target first. It assumes every deposit is made on time and never missed, at the end of each month, with monthly compounding at a constant rate. And it ignores inflation: a nominal target hit years from now buys less than the same sum does today — the inflation calculator shows that gap.
Frequently asked questions
What if my savings earn no interest?
Set the rate to 0. The calculator detects this and simply divides your goal by the number of months, which is the correct answer when nothing compounds.
Does it include money I have already saved?
No. It assumes you are starting from zero. If you already have a balance, work out what that balance alone will grow to over the same period, subtract it from your goal, and run the calculator on the remainder.
Are deposits assumed at the start or end of each month?
At the end — this is an ordinary annuity. Depositing at the start of each month gives every payment one extra month of growth, so you would need slightly less than the figure shown.
Does it account for inflation?
No. The target is in today’s money and the result is a nominal figure. If your goal is years away, the real purchasing power of that target will be lower than it is now, so consider whether the target itself should be higher.
What rate should I enter?
Whatever your account or investment actually pays, not a default we pick for you. Bear in mind that variable savings rates change, and if the money is invested rather than saved, the return is not fixed at all — the calculator assumes a single constant rate throughout.
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