Savings Goal Calculator
This savings goal calculator tells you exactly how much to set aside each month to reach a target amount by a target date. Enter your goal, what you've already saved, an expected annual return, and how many years you have, and you'll instantly see the required monthly saving — whether you're building an emergency fund, a house down payment, or a dream-vacation stash.
The calculator accounts for growth along the way: your existing savings keep compounding, and every monthly deposit earns returns from the moment it lands. That means the real number is usually lower than simply dividing your goal by the number of months — and the results break out how much you'll contribute versus how much interest or investment growth covers for you.
How it works
The calculator first converts your annual return into a monthly rate and counts the months until your deadline. It then projects what your current savings will grow to on their own by the target date. Whatever gap remains between that projected balance and your goal must be covered by monthly deposits — so it solves for the fixed monthly payment whose future value, with each deposit compounding until the deadline, exactly fills that gap. If your current savings alone are projected to meet the goal, the required monthly amount is simply $0.
Formula
With monthly rate i = r / 12 (annual rate r as a decimal) and n months, current savings P grow to P(1 + i)n. The required monthly deposit is PMT = (G − P(1 + i)n) × i ÷ ((1 + i)n − 1), where G is your goal. This is the standard future-value-of-an-annuity formula solved for the payment. When the return rate is 0%, it reduces to PMT = (G − P) ÷ n.
Worked example
Say your goal is $25,000, you already have $5,000 saved, you expect a 4% annual return, and you have 5 years (60 months). The monthly rate is 0.04 ÷ 12 ≈ 0.003333, and (1 + i)60 ≈ 1.2210. Your $5,000 grows on its own to about $6,104.98, leaving roughly $18,895 for deposits to cover. Solving the formula gives a required monthly saving of $285.00. Over 60 months you'd contribute $17,100 in total, and growth from returns covers the remaining $2,900 of the $20,000 you still needed.
This calculator is for informational purposes only, not professional advice. Projections assume a constant rate of return and do not account for taxes, fees, or inflation. Consult a qualified financial advisor before making investment decisions.
Frequently asked questions
How is the required monthly amount calculated?
The calculator projects what your current savings will grow to by the deadline at your chosen return rate, subtracts that from the goal, and then solves the future-value-of-an-annuity formula for the monthly deposit that fills the remaining gap. Because every deposit earns returns from the month it is made, the answer is usually lower than just dividing the shortfall by the number of months.
What return rate should I assume for a short-term goal?
For goals within a few years, use the rate of a high-yield savings account or CD — recently around 4-5% APY — since that is where short-term money typically belongs. For longer horizons of five to ten-plus years where you might invest, a conservative 5-7% is a common planning assumption. When in doubt, use a lower rate; a pleasant surprise beats a shortfall.
Should I invest money for a short-term savings goal?
Generally no. Stocks can drop 20% or more in a single year, and a goal due in one to three years leaves no time to recover from a downturn. Most planners suggest keeping money needed within about three years in savings accounts, money-market funds, or CDs, and only investing for goals five or more years away where you can ride out volatility.
What if I can't afford the required monthly amount?
You have three levers: extend the deadline, lower the goal, or raise the return. Time is the most powerful — stretching a 5-year goal to 7 years cuts the required payment far more than proportionally, because each deposit compounds longer. Alternatively, rerun the numbers with a smaller target, or treat the gap as motivation to trim expenses or add income. Avoid chasing higher returns with money you cannot afford to lose.
How much does starting earlier change the required payment?
Substantially, for two reasons: more months to spread the goal across, and more time for compounding to help. Saving $25,000 at a 4% return takes about $377 per month over 5 years but only about $170 per month over 10 years — less than half, even though the time merely doubled. Every year you delay, the required payment climbs, so starting with a smaller amount today beats waiting to afford the perfect amount.