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Savings goal calculator

Turn a target into a monthly amount.

  • Formula and assumptions shown
  • Table and CSV export
  • Runs in your browser

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Inputs

$USD
$USD
%
years

Results update as you type. Amounts in USD. Rates are nominal annual rates.

Result

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Calculated result—

Enter your numbers to see an estimate.

Assumptions and methodology

How it works

The calculator solves the future-value equation for a contribution made at the end of every modeled month. It first grows your current balance, then calculates the equal monthly amount needed to close the remaining gap.

If your current balance is already enough under the assumptions, the required contribution is shown as $0. The schedule then makes the path visible month by month, including estimated interest and total contributions.

The required contribution is the level end-of-month deposit that lands exactly on the target. On shorter goals most of the target comes from your own deposits, so the assumed rate changes the answer less than the term or the starting balance does. Recalculate with a lower planning rate to see how much more saving would cover a weaker return.

Read the full methodology

Assumptions

  • The target and current balance are in the same currency and are treated as non-negative amounts.
  • The rate is nominal annual interest divided by 12; it remains constant for the term.
  • Required contributions occur at the end of each month and remain equal throughout the term.
  • The estimate excludes taxes, fees, withdrawals, changing rates, and inflation; all amounts are nominal dollars.

Worked example

$50,000 in 5 years with $5,000 saved

At a 4% annual rate, the required end-of-month contribution is $662.08. Sixty deposits total $39,724.61 and modeled interest adds $5,275.39, taking the $5,000 already saved to the $50,000 target. At 0%, the same goal would need $750 a month.

Step by step

  1. Find the monthly rate and the number of months. 4% ÷ 12 = 0.3333% a month (0.0033333 as a decimal), over 5 × 12 = 60 months.
  2. Grow what is already saved. 1.0033333^60 = 1.2210, so the $5,000 already saved grows to $6,104.98 with no further deposits.
  3. Find the gap. $50,000 − $6,104.98 = $43,895.02 has to come from monthly deposits and the interest they earn.
  4. Divide by the annuity factor. One dollar deposited at the end of each month for 60 months grows to (1.2210 − 1) ÷ 0.0033333 = $66.2990. $43,895.02 ÷ 66.2990 = $662.08 a month.
  5. Check the totals. The model keeps the unrounded deposit ($662.0768), so 60 deposits total $39,724.61. Interest is $50,000 − $5,000 − $39,724.61 = $5,275.39.

How to read your result

Required each month is the level end-of-month deposit that brings the balance to the target in the final month. Total contributions is that deposit times the number of months, and Interest earned is the modeled growth on both the existing balance and the new deposits. The breakdown splits the target into Already saved, contributions, and growth.

The chart shows the projected balance rising toward a flat target line; the two meet in the last month. The schedule table lists each month’s balance, interest, and deposit, which makes it possible to compare a real account against the plan. In the example, the first month earns $16.67 of interest on the $5,000, and the balance after month 12 is $13,295.92.

The result is in nominal dollars. It does not raise the target for inflation, subtract taxes on interest, or allow for missed deposits. If the goal is a purchase whose price is likely to rise, the inflation calculator can estimate a future price to use as the target.

What changes the result most

Time to goal
Stretching the term from 5 to 7 years cuts the required deposit from $662.08 to $448.43 a month. Shortening it to 3 years raises it to $1,161.91.
Amount already saved
Starting with $15,000 instead of $5,000 lowers the required deposit to $477.91 a month.
Rate
Over five years the rate matters less: at 6% the deposit is $619.98, and at 0% it is $750.00, only $87.92 more than at 4%.

Questions

What if I already have enough saved?

The required monthly contribution is $0 when your current balance is projected to meet or exceed the target under the selected rate and term.

Can I make contributions at the beginning of the month?

This goal model solves for equal end-of-month contributions. If your deposits arrive earlier, compare the result with the compound interest calculator's beginning-of-month option.

What happens if my rate changes?

The result will change because it holds the entered rate constant. Recalculate with a lower or higher planning rate to explore a range instead of relying on one forecast.

How do you calculate a monthly savings goal?

Subtract what your current savings will grow to from the target, then divide by what $1 deposited each month grows to. With no interest, the second number is just the month count: ($50,000 − $5,000) ÷ 60 = $750. With interest, the annuity factor replaces the month count, as in the steps above, which gives $662.08 at 4%.

More in Savings & investing

Sources

These references explain the concepts behind the calculation. They do not endorse this site. Estimates leave out any cost or condition you did not enter.