Savings Goal Calculator
Enter a target, what you already have, an expected yearly return and a time frame to see the monthly amount that gets you there.
Illustrative estimate, not financial advice.
- Monthly saving needed
- $268.96
- Total you deposit
- $32,275
- Growth on what you have
- $3,235
- Interest on new deposits
- $12,725
To reach $50,000 in 10 years from $5,000 at 5% a year, you would save about $268.96 a month.
Illustrative estimate, not financial advice.
Assumptions
- A constant return, compounded monthly. Real returns vary.
- Deposits are made at the end of each month.
- No taxes, fees or inflation. In real terms you may need more.
Illustrative estimate, not financial advice. Results are shown before tax and fees unless stated.
What the savings goal calculator does
This works out the fixed amount to set aside every month so your savings, plus the growth they earn, reach your target by the deadline.
How it is calculated
Monthly deposit = (Goal - Current x (1 + r)^n) x r / ((1 + r)^n - 1), where r is the monthly rate and n the number of months, with deposits at the end of each month. At 0% it is (Goal - Current) / n. If your current savings already grow to the goal, the answer is zero.
Worked example
To reach $50,000 in 10 years from $5,000 at 5% a year, you would save about $268.96 a month.
Questions and answers
How much should I save each month?
Enter your goal, what you have and the months available. The result is the fixed monthly deposit needed under the stated return.
What if I assume 0% return?
Then the answer is simply the gap divided by the number of months. A positive return lowers the deposit.
Should I include inflation?
If the goal is in today's money, raise it for expected inflation first, or use a return that is net of inflation.
Is the target guaranteed?
No. Returns are not guaranteed. Use a cautious return, or treat the result as the minimum.