Savings Goal Calculator

"How much do I need to save each month?" is the most useful savings question, and it has an exact answer once you fix three inputs: what you have now, what you want, and when you want it. This calculator solves for the required monthly contribution, then shows how the total splits between the money you deposit and the growth it earns along the way.

The method is the same compounding formula used for any future value, rearranged to solve for the payment. If you assume no investment return, the required monthly amount is simply the gap divided by the number of months. Once you add a return, the deposits earn interest too, so the required monthly amount falls — and it falls more the longer the horizon, because each deposit has more time to work.

The choice of return assumption is the delicate part, and it should match the horizon. Money needed in a year or two belongs in a savings account or short-term instrument, where the return is near the inflation rate. Money that will not be touched for a decade can reasonably assume a diversified portfolio return, with the caveat that any single decade can disappoint. Using an aggressive rate for a short goal is the most common way these projections go wrong.

The calculator also reports the required monthly amount for a few target returns, so you can see how sensitive the answer is to that assumption. A goal that is easy at 7% may be demanding at 3%, and knowing the gap tells you whether to extend the deadline, raise the monthly amount, or lower the target. Review the plan annually, since life changes both the goal and what you can afford.

This calculator is an educational estimator. It is not financial, medical, tax, or legal advice, and it does not account for fees, local rules, or your personal circumstances. Confirm decisions with a qualified professional.