Savings goal calculator
For guidance only. This is not financial advice.
The formula
Contribution = (G − S × (1 + i)^n) × i ÷ ((1 + i)^n − 1)
G is your goal, S what you have saved, i the monthly interest rate and n the number of months. Contributions are made at the end of each month.
Worked example
You want $20,000 in 5 years, have $2,000 saved and expect 3% a year:
- Your $2,000 grows on its own for 60 months.
- You need to save $273.44 a month.
- You put in $18,406.19 in total.
- Interest covers the remaining $1,593.81.
Over short periods, nearly all the effort comes from you. So it makes sense to start with an amount you can keep up every month.
Using the result
Set up an automatic transfer right after payday. If your goal is close, avoid putting that money at risk.
First, make sure you have an emergency fund. For very long-term goals, try the retirement calculator.
Frequently asked questions
What return should I enter?
Use the actual rate if your account pays a fixed one. For short-term goals or money you cannot risk, try 0% to see the effort required without relying on market returns.
Does it account for inflation?
No. For goals many years away, raise your target to allow for rising prices. The inflation calculator can help you estimate how much.
What if the monthly amount is too high?
Extend the time frame, lower the target, or start smaller and raise your contribution over time. Change the values to see which trade-off works for you.