Saving for a house deposit, a car, studies or a project? This calculator tells you how much to put aside each month to reach your target amount on time.
How to use this calculator
- Target amount: how much you want to have.
- Starting amount: what you have already saved for this goal.
- Annual return: the rate your savings earn. Use a low rate for a savings account.
- Years: when you need the money.
Example
To reach $50,000 in 8 years, starting with $2,000 and earning 3% a year, you need to save about $438 a month. You contribute about $44,000 in total, and interest covers the rest.
Tips to reach your goal
- Set up an automatic transfer on payday, so saving happens before spending.
- Keep money for short-term goals in safe, accessible accounts: for a goal a few years away, a fall in the markets just before you need the money would be hard to recover.
- Review the plan each year and adjust the monthly amount if your income or the goal changes.
The formula
The monthly amount is the payment that, added to the growth of your starting amount, reaches the target: PMT = (Target − P × (1+i)^n) × i / ((1+i)^n − 1), where i is the monthly rate and n the number of months.
Frequently asked questions
What if the result is zero?
It means your starting amount, with the return you entered, already reaches the target in time.
Related calculators
- How Long to Reach a Savings Goal: How long it takes to reach a target amount, like your first million.
- Compound Interest Calculator: See how a starting amount and monthly savings grow over time.
- Net Worth Calculator: Add up what you own and what you owe to see your net worth.
This page was written with the help of AI tools (Claude, by Anthropic). The calculator runs entirely in your browser: nothing you enter is sent or stored.