Savings Goal Calculator

How to use this calculator

1. Enter your Savings goal, the total you want to have at the end.
2. Add Already saved, the money you can set aside for this goal today.
3. Enter the Annual interest rate your savings earn (use 0 for cash at home).
4. Set Time to reach it in years, then read Save each month, Save each week and Interest earned.

How the required deposit is found

The calculator works backwards from the target. First it grows your existing savings at the monthly rate until the deadline. Whatever gap remains is the amount your new deposits must cover, and the formula below converts that gap into a level monthly payment.

PMT = (Goal − Saved × (1 + i)^n) × i ÷ ((1 + i)^n − 1)

• PMT = amount to deposit each month
• Goal = the target balance
• Saved = amount already set aside
• i = monthly interest rate (annual rate converted to a monthly equivalent)
• n = number of months until the deadline

Deposits are assumed to be made at the end of each month, and interest is compounded monthly at the equivalent of your annual rate.

Example: $15,000 for a house deposit in three years

You want $15,000 in three years and already have $1,500. At a 4% annual rate the calculator says to save $348.57 per month, or $80.44 per week. You will deposit $12,549 in total, and $951 of the goal comes from interest.

With no interest at all, the same goal needs $375 a month. A modest rate saves you about $26 each month, which is useful but not decisive. The time you allow matters more.

What happens when you change the deadline

Stretch the same goal from three to five years and the monthly amount falls to $198.62, about 43% less. Interest rises to $1,583 because the money stays invested longer. A longer deadline is the most powerful way to make a goal affordable.

Compare that with the cost of waiting. If the purchase can move, a longer plan is gentler on your budget. If the date is fixed, such as tuition or a wedding, the only levers are a bigger starting amount or a smaller goal.

Making the plan work

Set up an automatic transfer on payday so the deposit happens before you can spend it. Keep the money in an account that matches your timeline: for goals under about five years most people stick to insured savings accounts or CDs rather than investments that can lose value just before they need the cash.

Check that the monthly figure fits your budget. If a goal competes with a thin safety net, start with the emergency fund calculator. To see how a fixed monthly deposit grows over a long period, use the compound interest calculator.

Assumptions and limits

The rate is treated as constant, but savings account rates change, so recalculate every year or so. The result is before tax on interest and ignores inflation, which means a price target may rise while you save.

If your goal is a price in today's money, such as a car, raise the target by the expected price increase or test it with the inflation calculator. The calculator also assumes you never withdraw from the account before the deadline.

Frequently asked questions