Savings goal calculator

How much do you need to save to reach your goal?

See the monthly or yearly deposit that grows your savings to the goal on time.

Your goal

Savings goal

Time to reach it

years

Interest rate

% per year

Deposits and interest

Already saved

Deposit every

Deposit made at

Interest compounded

Deposit needed each month

$288.94

To reach $50,000.00 in 10 years: $39,672.37 put in, $10,327.63 interest earned.

Nominal amounts before tax, fees and inflation, at a fixed rate. Real returns vary.

What the goal is made of

Money put in $39,672.37 · 79%
Interest earned $10,327.63 · 21%

= Final balance $50,000.00

How to use

Enter the amount you want to have and how much you have saved already (0 if you start from nothing).
Enter how many years you have and the yearly interest rate you expect.
Read the deposit you need to make. Open the deposit options to choose monthly or yearly deposits, and whether they go in at the start or the end of each period.

How it works

Saving toward a goal works backwards from compound interest: your money earns interest, and that interest earns interest too, so you do not need to put in the whole goal yourself. The calculator finds the regular deposit that, together with the interest, brings your balance to the goal exactly at the end.

What you already have grows to PV(1 + i)^k, where i is the interest rate per deposit period and k the number of deposits. The rest of the goal must come from deposits R, which add up to R((1 + i)^k − 1)/i. So R = (goal − PV(1 + i)^k) / (((1 + i)^k − 1)/i). For example, to have 1,268.25 after a year with 100 a month at 1% a month, you need exactly 100 a month.

The result assumes the rate stays the same for the whole period. It ignores taxes, account fees and inflation, so it is a nominal estimate, not a promise of returns. If what you have saved already grows to the goal, no deposits are needed.

Worked example

How much must you save monthly to reach 12,000 from 2,400 in 2 years with no interest?

Amount still needed: 12,000 − 2,400 = 9,600.
Monthly deposits: 2 × 12 = 24.

Save 9,600 ÷ 24 = 400 each month.

Frequently asked questions

What if I can only save a smaller amount?

Give yourself more years, lower the goal or look for a higher rate. Try a longer saving period first: it lowers the deposit the most, because the interest has more time to work.

Does it matter whether I deposit at the start or the end of the month?

A little: a deposit made at the start earns interest for one extra period, so a slightly smaller deposit reaches the same goal.

Should I use a rate for a savings account or for investments?

Use the rate you can really expect. Savings accounts pay a fairly steady rate, while shares and funds go up and down, so treat a rate for them as a rough guide.

Can I plan with no interest?

Yes. Set the rate to zero. The amount still needed is then divided equally between the deposits.

Why is the required deposit zero?

Your starting savings already reach the goal at the rate and time you entered. No further deposits are needed under those assumptions.

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