Savings Goal Calculator
Find the monthly deposit needed to reach a target amount by a target date.
Inputs
Allowed range: 0 to 1000000000
Allowed range: 0 to 1000000000
Allowed range: 0 to 100
Allowed range: 1 to 1200
Results
How it works
Given a future goal FV, a current balance PV, an annual return r and a horizon in months n, we solve for the required monthly contribution PMT using the future-value-of-an-annuity formula: FV = PV(1+i)^n + PMT·((1+i)^n − 1)/i, with i = r/12.
Complete guide
A savings-goal calculator turns a vague intention ('I want to buy a car in three years') into a concrete monthly number you can automate. It works backwards from the goal: given the future value you need, what you have already set aside, your expected return, and how long you have, it solves for the recurring deposit that closes the gap. This is the same math banks use to size annuity payments, just rearranged.
How to use it: enter your goal amount (down payment, trip, emergency fund, anything with a deadline), your current balance, the annual return you realistically expect from where you will hold the money, and the number of months you have. We return the monthly deposit required, the total you will personally contribute over the period, and how much of the goal is funded by investment growth instead of fresh cash.
Worked example: you want $20,000 in 36 months, you already have $2,000 saved, and you expect a 5% annual return in a high-yield savings account or short-term bond fund. Your $2,000 grows to about $2,323 on its own. You need to fund the remaining $17,677 through monthly deposits, which works out to roughly $456 per month. Over three years you will contribute $16,416 and earn about $1,261 in interest — modest, but real.
Practical tips: extending the horizon is almost always the most powerful lever because compounding has more time to work. Going from 24 to 36 months on the same goal typically cuts the required deposit by a third or more. Raising the expected return helps too, but only if you actually hold the money somewhere that earns it — a checking account at 0.01% does not. And if the required deposit is still impossible, the honest move is to lower the goal, not to fudge the return.
What return should you plug in? For money you need in under 18 months, stay conservative: 3–4% (a high-yield savings account or short-term Treasury). For 2–5 year goals, a diversified bond-heavy portfolio historically returns 4–6%. For horizons over 7 years, a globally diversified stock portfolio has historically returned 6–8% real over rolling periods, though no past return is a guarantee.
Frequently asked questions
- What return should I assume?
- Match the assumption to where the money will actually sit. Cash and short-term Treasuries: 3–4% in current rate environments. Diversified bond/stock portfolio held 5+ years: 5–7% nominal is a defensible long-run figure. Pure long-horizon stock portfolio: 7–9% nominal historically — but use a lower number if you want a margin of safety.
- Does it account for inflation?
- No — all values are nominal (today's dollars do not equal future dollars). To get a real-terms estimate, subtract expected inflation (roughly 2–3% per year in developed economies) from your assumed return. A 6% nominal return with 3% inflation is closer to a 3% real return.
- Does it account for taxes?
- No. If you hold the savings in a taxable account, your effective return is lower than the headline rate. For tax-advantaged accounts (401(k), IRA, ISA) the headline rate is closer to reality.
- What if I can already afford more than the required deposit?
- Increase your monthly contribution and either reach the goal earlier or aim for a larger target — both are valid wins. The required-deposit number is a floor, not a ceiling.