Savings Goal Calculator
Work backward from a target amount to a practical monthly savings plan.
How this is calculated
Monthly saving = (goal − saved × (1 + r)^n) × r ÷ ((1 + r)^n − 1), where r is the monthly rate (annual rate ÷ 12) and n is the number of months (years × 12). The first part works out how much the money already saved will grow to; the remainder is then spread across the months using the annuity formula. At a 0% rate this simplifies to (goal − saved) ÷ n.
What the result means
The estimate assumes a starting balance, equal deposits at the end of each month, and a steady annual rate compounded monthly. It does not predict market returns or account for taxes, fees, or inflation.
Worked example
A $10,000 goal in 2 years with $1,000 already saved and a 4% annual rate. With monthly compounding the calculator suggests about $360 a month, giving roughly $9,900 plus a little interest. Setting the rate to 0% gives 9000 ÷ 24 = $375 a month — the difference is the interest you expect to earn.
FAQ
- What if I do not earn interest?
- Set the annual rate to 0%. The calculator then divides the remaining goal evenly across the planned months.
- Should my emergency fund use a projected return?
- Use a conservative rate and prioritize access and account safety. A goal with a fixed deadline should not depend on an optimistic investment forecast.