Savings Goal Calculator
Work out how much to save each month to reach an amount, including what you already have and the interest.
Monthly deposit
$138.89
Total deposited
$9,333.58
Interest
$666.42
Balance by year
- Balance
- Deposited
Show the table
| Year | Balance | Deposited |
|---|---|---|
| 0 | $1,000 | $1,000 |
| 1 | $2,711 | $2,667 |
| 2 | $4,466 | $4,333 |
| 3 | $6,265 | $6,000 |
| 4 | $8,109 | $7,667 |
| 5 | $10,000 | $9,334 |
Savings goal, split
- Starting amount $1,000.00 10%
- Monthly deposits $8,333.58 83.3%
- Interest $666.42 6.7%
Total $10,000.00
Please note: This is an example calculation, not financial advice. Personal circumstances, changes in rules and rates, and additional costs are not included. If in doubt, talk to a financial adviser.
Tax on interest and changes in the savings rate are not included.
How this number is calculated
The blocks use your input. Change a value above and they update with it.
Step 1 · Monthly rate (as a fraction)
Step 2 · Growth factor over the period
Step 3 · Starting amount at the end
Step 4 · Monthly deposit
Step 5 · Total deposited
How the calculation works
Work out how much to save each month to reach an amount. Enter your goal, what you already have, the time frame and the interest rate, and see your monthly deposit, what you put in and what the interest adds.
Your starting amount grows with interest until the end of the period. Whatever is still missing is made up with a fixed monthly deposit, which earns interest too. The calculator credits interest monthly (one twelfth of the annual rate) with deposits at the end of each month, and finds the monthly deposit that lands exactly on your goal.
Formula
Monthly rate r = rate ÷ 100 ÷ 12, months n = years × 12, growth g = (1 + r)^n. Monthly deposit = (goal − starting amount × g) × r ÷ (g − 1). At 0% interest: (goal − starting amount) ÷ n.
Assumptions
- The rate stays the same for the whole period and interest is credited monthly.
- You deposit the same amount at the end of every month.
- Tax on interest is not included.
- Inflation is not included: 10,000 in 5 years is worth less than today.
- Amounts are rounded to the cent, the yearly balance to whole units.
Example calculations
The button fills in the calculator above, so you can carry on from there.
-
10,000 in 5 years
Monthly deposit
$138.89
Savings goal $10,000.00 · Starting amount $1,000.00 · Time frame (years) 5 · Annual interest rate (%) 2.5
-
Emergency fund of 5,000
Monthly deposit
$204.37
Savings goal $5,000.00 · Starting amount $0.00 · Time frame (years) 2 · Annual interest rate (%) 2
-
College fund
Monthly deposit
$84.43
Savings goal $25,000.00 · Starting amount $500.00 · Time frame (years) 18 · Annual interest rate (%) 3
Frequently asked questions
How much should I save each month?
For 10,000 in 5 years, starting with 1,000 and earning 2.5%, you deposit 138.89 a month. In total you put in 9,333.58, and 666.42 comes from interest.
Why does the interest make so little difference?
Over a short period at a low rate, the interest is small compared with what you put in yourself. Over a longer time it grows: for 25,000 in 18 years at 3%, just over a quarter of the goal comes from interest.
What if I have almost reached my goal?
If your starting amount and the interest already reach the goal, the calculator tells you. You do not need to deposit more; to get there sooner, choose a shorter time frame.
What if the interest rate changes?
Savings rates change regularly. Recalculate when your rate changes, or use a slightly lower rate to be on the safe side.
How is this different from a compound interest calculator?
A compound interest calculator goes from a fixed deposit to the final amount. This calculator works the other way round: from the amount you want to the deposit you need.
Last reviewed:
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