Savings Goal Calculator
Find how much to save each month to reach a savings goal.
How the monthly amount is calculated
Your savings grow each month: balance = balance × (1 + r) + deposit, where r is the monthly rate (annual return ÷ 12). Solving that for the deposit gives:
deposit = (goal − saved × (1 + r)n) × r ÷ ((1 + r)n − 1)
Here n is the number of months. If your return is 0%, the formula simply divides the amount you still need by the number of months.
Worked examples
- $20,000 in 5 years from $1,000 at 4%: save about $283.25 a month. You contribute $16,995 and interest adds about $2,005.
- Same goal with no return (0%): $19,000 ÷ 60 months = $316.67 a month. The 4% return lowers the monthly amount by about $33.
- $10,000 in 2 years from zero at 4%: about $400.92 a month, compared with $416.67 at 0%.
Tips for reaching a goal
- Automate the deposit so saving happens first.
- Use a savings account that matches your timeline. For short goals, avoid accounts whose value can fall.
- Revisit the number if your return, goal or timeline changes.
Frequently asked questions
What return should I use?
Use the interest rate your savings account actually pays. For investments, returns are not guaranteed and can be negative in some years, so use a cautious number.
What if the result is zero?
It means your current savings, with growth, already reach the goal in the time you chose.
Does this include taxes or inflation?
No. Interest can be taxable, and prices usually rise over time, so the real value of your goal may be higher than the number you enter.
Are deposits made at the start or the end of the month?
This calculator assumes a deposit at the end of each month. Depositing at the start of the month would require slightly less.
Results are illustrations for general information, not financial advice or a guarantee of returns.