A house deposit in three years
Enter the deposit, three years, and the rate your savings account really pays. Notice how small the interest portion is over that horizon - the monthly contribution is doing nearly all the work.
Savings Goal Calculator
Work backwards from a target and a date to the monthly saving that gets you there.
Maintained by Roshan.
Use Savings Goal Calculator
Works backwards from the amount you need and the date you need it, to the monthly contribution that gets you there.
Interest does less than people expect over short periodsOver two or three years the rate barely moves the monthly figure, because contributions have little time to earn anything. Over ten or twenty it dominates. Compare the two by changing the years and watching how much of the total is interest.
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Browse all finance calculatorsAbout Savings Goal Calculator
Most savings calculators work forwards: you put in a monthly amount and they tell you what you end up with. That is the wrong direction for how people actually plan. You know the deposit you need, the wedding you are paying for, or the amount you want in reserve, and you know roughly when. The useful question is what that means each month, starting now. This runs the calculation backwards, taking the target, the date, anything already saved, and the return you expect, and returning the monthly contribution required. It also splits the result into the part you contribute and the part growth provides, which is the figure that tells you whether the interest rate is doing any real work over your timescale - and over short periods, it usually is not.
Using Savings Goal Calculator
- The target is treated as a future value and the contribution is solved for, which is the inverse of the usual compound growth formula.
- Anything already saved is grown forward across the whole period first, then subtracted from the target, so the monthly figure only has to cover the genuine shortfall.
- Contributions are assumed monthly, with the return compounded monthly at one twelfth of the annual rate. That matches how most savings accounts credit interest.
- A zero return is handled directly as division rather than through the growth formula, because every annuity calculation divides by the periodic rate and would otherwise produce nothing at all for a zero-interest account.
- If the starting balance grows past the target on its own, the tool says so and asks for nothing rather than reporting a negative contribution.
Where savings goal calculator helps
Seeing when growth starts to matter
Keep the target and change the years from three to twenty. The interest share climbs sharply, which is the clearest argument for starting long-term goals early.
Before you use the result
- The return is assumed constant. Real investment returns vary and can be negative in any given year, so a market-based figure should be treated as an average rather than a guarantee.
- Inflation is not included. A target set in today's money will buy less by the time you reach it; the inflation calculator shows how much less.
- Tax on interest or gains is ignored, as are account fees. Both raise the contribution actually required.
- Contributions are assumed to be made at the end of each month and never missed. Paying at the start of the month gets you there slightly sooner.
- For a cash savings goal within a few years, use the rate your account actually pays. Applying a long-run stock market average to a short horizon is where these calculations most often mislead.
Questions about Savings Goal Calculator
Why does the interest barely change my monthly figure?
Over a short period contributions have little time to earn anything, so the rate hardly matters. Extend the horizon and the interest share grows quickly.
What return should I assume?
For a goal within about five years, the rate your savings account pays. For longer horizons a diversified investment average is defensible, but remember it is an average and not a promise.
Does this account for inflation?
No. The target is in today's money. If the goal is years away, inflate it first with the inflation calculator and use that larger figure here.
What if I already have savings?
Enter them as the starting amount. They are grown across the period and deducted from the target, which lowers the monthly figure.
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