About the Savings Goal Calculator
Find out how much to save each month to reach a savings goal. Enter the amount you want, what you have saved already, how many years you have, the interest rate you expect and how often it compounds, and the calculator gives the monthly amount, with the balance for every year until the goal.
Use it for a house deposit, a child's college fund, an emergency fund or a retirement target.
How it works
First the calculator works out what your current savings grow to on their own by the deadline. The rest of the goal has to come from monthly savings, and it finds the monthly amount that, with interest, makes up exactly that gap.
Saving for $100,000 in 18 years with $5,000 already saved at 6%: the $5,000 grows to $14,271.70 on its own, and $231.16 a month covers the rest when interest is compounded annually. Compounded monthly, $220.25 a month is enough, because each month's savings start earning interest sooner.
The monthly savings of each compounding period are added at its end: with annual compounding, twelve months of savings go in at the end of each year. If your current savings alone grow past the goal, the calculator says so, and shows how much you could take out each month instead and still reach it.
Assumptions and limits
- The interest rate stays the same for the whole time. A lower rate means saving more each month, so try a cautious rate too.
- You save the same amount every month.
- Taxes, fees and inflation are not taken out. For a goal many years away, inflation means the goal itself may need to be higher.
Worked examples
A college fund
$100,000 in 18 years, starting with $5,000, at 6% compounded annually: save $231.16 a month.
No interest
$50,000 in 10 years with nothing saved and no interest: $416.67 a month, the goal divided by 120 months.
The goal is already in reach
$15,000 at 5% grows to $24,433.42 in 10 years, past a $20,000 goal; you could take out $29.37 a month and still reach it.
How to use the Savings Goal Calculator
- Step 1: Savings Goal. Enter the amount you want to end up with.
- Step 2: Initial Investment. Enter what you have already saved toward it.
- Step 3: Growth Over Time. Enter the years you have to reach the goal.
- Step 4: Interest Rate. Enter the yearly return you expect on your savings.
- Step 5: Compound It. Choose annual, semiannual, monthly or daily compounding.
Frequently asked questions
How much do I need to save each month to reach my goal?
It depends on the goal, the time and the interest rate. Enter them above and the calculator finds the monthly amount: for example, $1,000,000 in 30 years at 7% compounded annually needs $882.20 a month starting from nothing.
How does the interest rate change the monthly amount?
A higher rate means interest does more of the work, so you save less each month. Over long periods the difference is large: reaching $1,000,000 at 7% compounded annually takes $882.20 a month over 30 years but only $417.43 a month over 40 years.
Why is the monthly amount lower with monthly compounding?
With monthly compounding each month's savings are added and start earning interest straight away. With annual compounding a year of savings is added at the end of the year, so it earns interest later and you need to save a little more.
What does it mean if the calculator says I can withdraw money?
Your current savings grow past the goal on their own by the deadline. The amount shown is what you could take out each month and still have exactly the goal at the end, if the interest rate holds.
Should I count inflation in my savings goal?
For goals many years away, yes. Prices rise over time, so $100,000 in 18 years will buy less than $100,000 today. Raise the goal by the inflation you expect, or use an interest rate with inflation already taken off.
This tool runs entirely in your browser. What you enter or upload stays on your device and is never sent to our servers.