Savings Goal Calculator
Enter a savings goal, what you have already, an interest rate and a time frame to see how much to save each month.
What this tool does
To reach a savings goal, you need to save a fixed amount each month. Enter the target, what you have already saved, the annual interest rate and the number of years. The calculator works out the monthly deposit, assuming monthly compounding and deposits at the end of each month.
Solves for the monthly deposit that grows your current savings and your deposits to the target in the time you give it.
Splits the total into your contributions and interest earned.
How to use it
- Enter your savings goal.
- Enter what you have already saved.
- Enter the annual interest rate (0 if none) and the number of years.
- Choose a currency symbol.
- Read the monthly saving needed and the breakdown.
Why use this calculator
Tells you exactly how much to save each month to reach a target by a date, allowing for interest and what you have already saved. A goal like "10,000 in three years" is hard to act on until you know the monthly figure. Seeing it shows whether the plan fits your budget, and how much extra time or interest changes it.
Why we built it
We built the savings goal calculator to say exactly how much to save each month to reach a target by a date, allowing for interest and what you have already. The budget planner shows where the money can come from, and the investment calculator models longer-term growth.
For a neighbouring job there is also the Target Heart Rate Calculator and the Dividend Calculator.
Who this tool is for
- Savers working towards a deposit or holiday
- Families building an emergency fund
- Anyone with a target date
When to use it
- Saving for a house deposit, car, holiday or wedding.
- Building an emergency fund by a target date.
- Comparing what a higher interest rate saves you each month.
- Deciding how long a goal will take on a fixed budget.
How it works
Money you already have grows by (1 + r)^n, where r is the monthly rate (annual rate ÷ 12) and n is the number of months. The monthly deposit PMT must cover the gap: PMT = (goal − savings × (1 + r)^n) × r ÷ ((1 + r)^n − 1). At a 0% rate this simplifies to (goal − savings) ÷ n.
Example: to reach 10,000 in 3 years at 4% from nothing, the monthly deposit is about 262; at 0% interest it would be 278 a month.
Rates change, and tax on interest is not included. If your goal is far off, review the figures every year.
A worked example
These are the values the calculator opens with, so you can see exactly what it does with them. Change any value on the page and the result updates; the figures below come from the same calculation.
| Input | Value |
|---|---|
| Savings goal | 10000 |
| Already saved | 1000 |
| Annual interest rate | 4 |
| Years to reach it | 3 |
| Currency symbol | $ |
With those inputs, the calculator returns:
- Monthly saving needed: $232.38
- Months: 36
- Total you put in: $9,365.77
- Interest earned: $634.23
- Goal reached: $10,000.00
What you give it, and what you get back
| Item | Details |
|---|---|
| Goal and current savings | The target and what you have already, in the same currency. |
| Rate | The annual interest rate as a percentage; 0 is allowed. |
| Years | How long you have; it can be a fraction such as 1.5. |
| Result | The monthly saving, total contributed, interest earned and the goal. |
Issues you may run into
| What you see | Why it happens | What to do |
|---|---|---|
| Monthly figure is 0 | Your current savings grow to the goal on their own. | Raise the goal or shorten the time. |
| Figure higher than expected | The time frame is short or the rate is low. | Extend the period, or lower the goal. |
| Result differs from my bank | Banks may compound daily or pay at different times. | Treat this as a close estimate. |
| Interest rate changes | A variable rate will move over time. | Re-run it when the rate changes. |
Assumptions and limitations
- Assumes a fixed rate, monthly compounding and deposits at the end of each month.
- Does not include tax, fees or inflation.
- It is not financial advice.
Frequently asked questions
How much should I save each month to reach my goal?
Enter the goal, your current savings, the interest rate and the time. The monthly saving needed is shown at the top.
Does interest change the monthly amount?
Yes. The more interest your savings earn, the less you need to put in, especially over longer periods.
Can I use a 0% rate?
Yes. Then the answer is simply the remaining amount divided by the number of months.
What if I already have some savings?
Enter them in the "Already saved" box. They grow with interest and reduce the monthly amount you need.
Does it include inflation?
No. If you want results in today's money, use an after-inflation (real) interest rate.
Is it saved or sent anywhere?
No. It runs in your browser.