Savings Goal Calculator
It works out how much to put away each month to reach a target by a set date, allowing for interest earned on both your existing balance and every new deposit.
Save each month
$249.59
Monthly deposit
$249.59
Total deposited
$29,951
Interest earned
$15,049
Starting balance grows
$4,097
Target
$50,000
Months
120
What it calculates
It works out how much to put away each month to reach a target by a set date, allowing for interest earned on both your existing balance and every new deposit.
Why it matters
Working backwards from the goal is the only way to know whether a deadline is realistic. Interest does a surprising share of the work over long horizons.
Who it's for
Anyone saving for a down payment, a wedding, a car or an emergency fund, and parents building a college fund.
Formula
- FV
- Target amount
- P
- What you have already saved
- i
- Monthly interest rate
- n
- Number of monthly deposits
Worked example
$50,000 in 10 years, starting from $5,000 at 6%
- 1The $5,000 grows to $9,097 on its own
- 2Shortfall = 50,000 − 9,097 = $40,903
- 3PMT = shortfall × i ÷ ((1 + i)ⁿ − 1)
About $250 a month
How the savings goal calculator works
The target is the future value of two things: your existing balance compounding on its own, and a stream of monthly deposits each compounding for however long it has left. Solving the annuity formula for the deposit gives PMT = (target − P(1+i)ⁿ) × i ÷ ((1+i)ⁿ − 1). Because the existing balance grows without help, a larger starting pot cuts the required deposit by more than its face value.
The target is the future value of two things: your existing balance compounding on its own, and a stream of monthly deposits each compounding for however long it has left.
Because the existing balance grows without any help, a larger starting pot cuts the required deposit by more than its face value.
Common mistakes
- Dividing the target by the number of months and ignoring interest entirely.
- Assuming a high return on money needed within a few years, when it should be somewhere safe.
- Forgetting that inflation erodes the target itself over long horizons.
Tips and best practice
- Automate the transfer for the day after payday; saving what is left at month end rarely works.
- For goals under about three years, prioritize safety over return — there is no time to recover a loss.
- Push the deadline out a year and watch the required monthly amount drop sharply.
Frequently asked questions
How much do I need to save each month?
It depends on the target, your starting balance, the deadline and the return. Reaching $50,000 in ten years from $5,000 at 6% takes about $250 a month.
Does the calculator account for interest?
Yes. It compounds both your existing balance and every deposit monthly, which is why the required amount is well below the target divided by the months.
What return should I assume?
For money needed within a few years, use a cash or savings rate. For horizons beyond about ten years, a diversified portfolio has historically returned more, with real risk of loss along the way.
What if I cannot afford the monthly amount?
Extend the deadline, lower the target, or increase the starting balance. Extending the timeline usually moves the monthly figure the most.
Related calculators
Methodology & trust
- Formula source
- Future-value annuity solved for the periodic payment.
- Last updated
- 2026-07-28
- Privacy
- Every calculation runs in your browser. No inputs are sent to a server or stored.
- Accessibility
- Keyboard navigable, labeled inputs and WCAG AA color contrast.