What calculation mode should I use?

Use 'Time to Goal' if you have a fixed budget. Use 'Required Deposit' if you have a deadline. Use 'Achievable Goal' to see what's possible with your current plan.

How do I account for inflation?

For long-term goals, increase your goal amount by ~3% per year inflation, or subtract expected inflation from your return rate to use 'real' returns.

Should I prioritize higher deposits or more time?

Time is usually more powerful due to compounding. Starting earlier with smaller deposits often beats larger deposits later.

What if my goal seems unachievable?

Try adjusting your inputs: increase monthly deposits, extend the time period, or lower your goal amount. Even small changes can make a big difference over time.

How often should I review my savings plan?

Review your savings plan at least annually, or whenever your financial situation changes. Update your goals, deposits, and timeframes as needed to stay on track.

Savings Goal Calculator

Plan your savings by calculating time needed, required deposits, or achievable goals.

Calculator

Result

Savings Goal: $0.00
Current Savings: $0.00
Interest Rate: 0%
Time Period: 0 years

Formula & Guide

Formula

PMT

Required Deposit

PMT = (Goal - FV_current) × r / [(1+r)^n - 1]

Monthly deposit needed to reach goal

n

Time to Goal

Solve: FV_current + FV_deposits = Goal

Months needed to reach target amount

Formula Variables

Goal

Target Amount

How much you want to save

FV_current

Future Value of Current Savings

Current savings with compound interest

FV_deposits

Future Value of Deposits

Future value of monthly contributions

r

Monthly Rate

Annual rate ÷ 12

n

Number of Months

Time period in months

Step-by-Step Scenario

Example Scenario

Savings Goal

$50,000

Current Savings

$5,000

Monthly Deposit

$500

Interest Rate

6% annually

1

Calculate Monthly Rate

r = 6% ÷ 12 = 0.5% = 0.005

2

Calculate Future Value of Current Savings

FV_current = $5,000 × (1.005)^n
Where n is the number of months

3

Calculate Future Value of Monthly Deposits

FV_deposits = $500 × [(1.005)^n - 1] / 0.005

4

Solve for Time

$5,000 × (1.005)^n + $500 × [(1.005)^n - 1] / 0.005 = $50,000
n ≈ 85 months ≈ 7.1 years

Time to Goal = 7.1 years

Additional Examples

Find Time

Goal: $50,000

Monthly: $400

Rate: 6%

Time Needed

8.5 years

Find Deposit

Goal: $100,000

Time: 15 years

Rate: 7%

Monthly Deposit

$330

Find Goal

Monthly: $500

Time: 20 years

Rate: 8%

Achievable Goal

$294,510

Characteristics of Savings Goals

Set Clear Goals

Specific goals like 'Emergency Fund' or 'House Down Payment' help motivation and planning.

Use Compounding

Reinvesting returns accelerates growth exponentially over time.

Start Early

Time is the biggest factor in reaching savings goals. Starting earlier makes a huge difference.

Automate Savings

Set up automatic transfers to ensure consistent progress toward your goals.

Important Notes

Break large goals into smaller milestones to track progress.
Adjust your plan yearly based on progress and changing circumstances.
Consider tax-advantaged accounts for retirement goals to maximize growth.
Build an emergency fund before aggressive investing to avoid setbacks.
Interest rates are estimates; actual returns may vary based on market conditions.
Regular contributions are key to success; consistency matters more than perfect timing.

Frequently Asked Questions

Common questions about savings goals.