Savings Goal Calculator

This calculator answers the question: if I want $X in Y months, how much do I need to set aside each month? It assumes you make equal monthly deposits into an account earning a fixed interest rate.

The formula used is the future value of an ordinary annuity: PMT = FV × r / ((1 + r)^n − 1), where FV is your target, r is the monthly interest rate, and n is the number of months.

If your interest rate is 0%, the result is simply your goal divided by the number of months — a straight-line savings plan.

Use this calculator for: planning a house deposit, building an emergency fund, saving for a holiday, a car, a wedding, school fees, or any fixed-amount goal with a defined deadline.

Use a different tool when you want to know how a lump sum will grow over time (use the compound interest calculator), or when planning for retirement with ongoing contributions over decades (use a dedicated retirement calculator that accounts for inflation and variable returns).

Pro tip: run this calculator twice — once with your current savings rate and once with your ideal rate. The gap between the two results is exactly what an automatic transfer on payday closes.

Forgetting existing savings. If you already have money toward your goal, subtract it from the target before entering. The calculator assumes you are starting from zero.

Using gross rather than net interest. Tax on savings interest reduces your effective rate. In a taxable account, a 5% rate might net 3.5–4% after tax. Use your after-tax rate for accurate results.

Underestimating the timeline. Most people overestimate how quickly they will reach a goal. Build in a 10–15% buffer on your monthly target so that one missed month does not derail the plan.

Ignoring inflation. A $20,000 goal set today will have less purchasing power in 5 years. For long-term goals, consider increasing your target by 2–3% per year to maintain real value.

Example: saving $20,000 in 3 years (36 months) at 4.5% annual interest. Monthly rate r = 4.5% ÷ 12 = 0.375%. PMT = 20,000 × 0.00375 / ((1.00375)^36 − 1) = $524/month.

Without interest at 0%, the same goal requires $20,000 ÷ 36 = $556/month. The interest earns you $32/month — or $1,152 over the full period.

The interest effect grows with time. Over 10 years at 5%, interest can fund 25–30% of your goal, meaningfully reducing required monthly deposits.