Savings Goal
How much to save monthly
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About this tool
Enter your target amount, the time you have, an expected annual rate, and any money you have already saved, and this shows how much you need to set aside each month to reach the goal. It assumes what you already have keeps earning interest over that period and subtracts its future value from the target first, then works out the monthly deposit needed for the remaining gap, accounting for interest on those deposits too.
How to use
- Enter the target amount.
- Enter how many months you have to save.
- Enter the expected annual rate (%) โ leave it at 0 to simply divide the shortfall by the number of months.
- Enter any amount already saved, then check how much to save each month.
Frequently asked questions
- How is money I have already saved factored in?
- It assumes what you already have keeps growing at the annual rate you entered over the saving period, calculates its future value, and subtracts that from the target. Only the remaining gap determines how much you need to save each month.
- What formula calculates the monthly amount?
- It works backward from a standard future-value-of-annuity formula, assuming equal monthly deposits compounded monthly, solved for the payment that reaches the target. With the rate set to 0, it skips interest and simply divides the shortfall by the number of months.
- What does it mean if it says I have already reached the goal?
- It means the money you already have, once its future growth is factored in, exceeds the target before the term ends. In that case you do not need to save anything more.
- Are taxes included in the calculation?
- No. This uses the raw interest rate without accounting for interest income tax or similar deductions. Since the actual after-tax rate is lower, the real monthly amount you need may be slightly higher than this result.
This calculates the required savings amount reflecting monthly compound interest, but does not account for taxes. The amount needed may differ based on the actual rate and tax treatment of a real product.