In short
Whether it is a house deposit, a car or an emergency fund, a goal is easier to reach with a number to aim for. This calculator works out the monthly amount to save, taking into account what you already have and the interest your savings earn.
How it works
Your current savings grow with interest until the deadline. The monthly amount covers the rest: it is the deposit that, added at the end of each month and earning interest, lands exactly on your goal.
Worked example
To save 50,000 in 5 years with 5,000 already saved at 4% a year, you need to save 662.08 a month. You put in 44,725 in total, including the 5,000 you already have, and interest adds the other 5,275.
Without any interest you would need 750 a month.
Tips for reaching your goal
Automate a transfer on payday so saving happens first. Keep short-term goals in a safe account rather than investments that can fall just when you need the money.
If the monthly amount is too high, extend the deadline or lower the goal; small changes to either make a big difference.
Frequently asked questions
What if I already have enough?
If your current savings will grow past the goal on their own, the calculator shows 0 a month and the balance you would reach.
Which interest rate should I use?
The rate on the account where you keep the money. For long-term goals invested in funds, use a cautious expected return.
Does it include inflation?
No. If your goal is years away, raise it by expected inflation first: the inflation calculator shows by how much.
When are the monthly deposits made?
At the end of each month, starting next month.
Methodology
Monthly deposit = (goal − S × (1 + j)^n) × j / ((1 + j)^n − 1), where S is what you have saved, j the monthly rate (annual rate ÷ 12) and n the number of months; with a 0% rate it is (goal − S) ÷ n. The period is counted in whole months. Values are rounded for display only.
This calculator gives estimates for information only and is not financial advice. Interest rates can change.
Last reviewed: