📌 Overview
Work out how much to save each month to hit a target amount by a deadline, or how long your current savings rate will take, with interest included.
🎯 Savings Goal Calculator
Work out how much to save each month to hit a target amount by a deadline, or how long your current savings rate will take, with interest included.
📖 Deep Dive: Savings Goal Calculator
Two common questions
Saving plans usually come down to two questions: how much do I need to save each month to reach the goal on time, and at my current pace when will I get there. This tool supports both modes.
The formula behind it
Regular deposits with compounding use the future-value-of-an-annuity formula: FV = PV times (1+r)^n + PMT times (((1+r)^n - 1) divided by r), where r is the monthly rate and n is the number of months. Solving for PMT gives the monthly amount to save.
An example
Goal 300000 down payment, current savings 50000, annual rate 3%, want to reach it in 5 years. The formula gives about 3835 per month; without interest you would need about 4167 - interest saves you about 20000 of principal.