Savings Goal Calculator
This savings goal calculator tells you how much you need to set aside every month to reach a target amount within a chosen time frame. Enter the goal you are aiming for, how much you have already saved, the annual return you expect on your money, and the number of years you have to get there. It instantly returns the monthly contribution required, taking compound growth into account so that both your existing balance and each new deposit keep working for you along the way.
Monthly saving needed
Savings goal
Years to reach it
Assumes a constant annual return compounded monthly and does not adjust for inflation. The result is an approximate estimate.
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How it works
The calculator treats your savings as an account that earns a fixed annual return, compounded monthly. The monthly rate is the annual return divided by twelve, and the number of periods is the number of years times twelve. Your current savings are grown forward to the target date, and the remaining gap is covered by a stream of equal monthly deposits. Using the future value of an annuity, the required monthly saving is (FV − PV·(1+r)^n)·r / ((1+r)^n − 1), where FV is the goal, PV is what you already have, r is the monthly rate and n is the number of months. If the return is zero, it simply splits the remaining gap evenly across every month.
How much to save per month by term
Ignoring any return, the monthly amount is simply the goal divided by the number of months. For a goal of 12,000, this table shows how much you would need to set aside each month depending on the term you give yourself. The longer the term, the lower the monthly amount, but the longer it takes to get there: that is the central trade-off of any savings plan.
| Term | Monthly amount |
|---|---|
| 12 months | 1,000 |
| 24 months | 500 |
| 36 months | 333 |
| 48 months | 250 |
| 60 months | 200 |
Compound interest and inflation
If you invest what you save, the return does part of the work for you. To reach 12,000 in 24 months with no return you need 500 a month; with a 6% annual return the amount drops to about 472, because each deposit earns interest until the target date. Over long-term goals the effect grows, but you also have to account for inflation: if prices rise, 12,000 in five years will buy less than it does today, so it is wise to set a slightly higher goal to preserve your purchasing power.
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Preguntas frecuentes
- How is the monthly saving calculated?
- The calculator projects your current savings forward at the expected return and then works out the constant monthly deposit needed to cover the remaining gap to your goal. It uses the future value of an annuity formula, so each deposit earns compound returns from the moment it is made until the target date.
- Does it account for the money I already have saved?
- Yes. Your current savings are grown at the same annual return over the whole period, and only the difference between that projected balance and your goal has to come from new monthly deposits. The more you already have, the smaller the monthly amount required.
- What return should I assume?
- Use a rate you can realistically expect from where the money will sit. A savings account might return 2–4%, a diversified investment portfolio historically more but with risk. When in doubt, use a conservative figure, since a lower assumed return means you need to save more each month.
- Does the calculator adjust for inflation?
- No. It works entirely in today's currency and assumes a constant nominal return. If you want your goal to keep its purchasing power, set the goal higher to reflect expected inflation, or use a return net of inflation as a rough real-terms estimate.
- What if I set the return to zero?
- With a zero return the calculation is straightforward: it takes the gap between your goal and your current savings and divides it evenly across every month in the period. This is useful if you are saving in cash or simply want a plan that ignores investment growth.