Savings Goal Calculator
Find out how much you need to save each month to reach your goal, or how long it will take at your current savings rate. Includes investment growth projections.
How It Works
Pick a savings goal and either find out how much you need to save each month to reach it by a target date, or how long it will take at a monthly contribution you choose. Both modes account for interest earned on your growing balance, not just simple addition.
Formula
PMT = (FV − PV × (1+r)^n) × r / ((1+r)^n − 1)
Where: PMT = required monthly contribution | FV = savings goal | PV = current savings | r = monthly return rate (annual rate ÷ 12 ÷ 100) | n = number of months. To solve for time instead, the calculator rearranges the same compound growth formula for n.
Worked Example
Saving $50,000 for a down payment in 5 years
- Savings goal: $50,000
- Current savings: $5,000
- Expected annual return: 4.5% (high-yield savings)
- Time horizon: 5 years (60 months)
- Required monthly contribution ≈ $645/month
- Total contributed over 5 years ≈ $38,700, plus $5,000 starting balance and ≈$6,300 in interest
Common Mistakes
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Ignoring interest entirely when planning a savings goal
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Treating the goal as a simple division (goal ÷ months) overstates how much you need to save each month, especially for goals 3+ years away.
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Using a growth investment rate for a short-term goal
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If your goal is less than 2-3 years away, avoid assuming stock-market-level returns — a market downturn could leave you short. Use a savings-account-level rate for near-term goals.
Frequently Asked Questions
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DisclaimerThe results provided by this calculator are estimates and for informational purposes only. They do not constitute financial, legal, or professional advice. Please consult with a qualified professional for your specific needs.