About the Savings Goal Calculator
Whether you are building an emergency fund, saving for a down payment, planning a wedding, or putting money aside for a car, a clear monthly target turns a big number into a manageable plan.
Enter the timeframe as a number of months or pick a target month, and the calculator works out the required monthly deposit, how much of the goal comes from your deposits, and how much comes from interest.
How It Works
First, the calculator projects how much your current savings will grow by the target date at your interest rate, compounded monthly. The shortfall between that projection and your goal is what your monthly deposits need to cover.
It then solves for the monthly deposit that, with interest, grows to exactly the shortfall by the target date. Deposits are assumed to be made at the end of each month.
Formula
- Gsavings goal
- Scurrent savings
- imonthly rate = annual rate ÷ 12
- nnumber of months
Example
You want $20,000 for a home down payment in 3 years. You already have $5,000 in a high-yield savings account earning 4%.
Inputs
- Goal
- $20,000
- Current savings
- $5,000
- Interest rate
- 4.00%
- Timeframe
- 36 months
Results
- Required monthly savings
- $376.19
- Total contributions
- $13,542.95
- Interest earned
- $1,457.05
Understanding Your Results
- Required Monthly Contribution: The amount to deposit at the end of every month to reach the goal on time.
- Total Contributions: All future monthly deposits added together (not including what you have already saved).
- Interest Earned: Estimated interest on your current savings and new deposits.
- Saved So Far: Your current savings as a percentage of the goal.