Savings Goal Calculator
The Savings Goal Calculator finds the monthly contribution needed to reach a target amount by a deadline, given your current balance and the interest your savings will earn.
What this means
Every month your balance earns interest while you add a fixed contribution. Starting earlier or saving more monthly both accelerate the goal — this calculator finds the right monthly number.
How we calculate it
Formula
Monthly contribution = (Target − FV of current balance) × r / ((1 + r)^n − 1) — with r monthly rate and n months.Worked example
Save $50,000 in 10 years at 6% starting from $0:
- 1Monthly rate = 6% / 12 = 0.5%, months = 120
- 2Monthly contribution ≈ $305
- 3Total contributions ≈ $36,600, interest ≈ $13,400
Important assumptions
- Contributions are made monthly at a constant amount.
- The annual rate stays constant over the horizon.
- Earnings are taxed only if you withdraw them.
Frequently asked questions
How much should I save each month?
Start with any consistent amount and raise it with raises and windfalls. Automation is the most reliable way to actually hit the goal.
Should I save or invest for my goal?
Short-term goals belong in cash and savings; longer horizons can tolerate investment risk for higher expected growth.