Savings Goal Calculator
Find how much to save each month to reach a goal.
How to use this tool
- Enter savings goal, years and annual rate in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your monthly saving and the full breakdown beneath it.
Find how much to save each month to reach a goal.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
When interest rate = 0: Monthly saving = Goal ÷ (Years × 12)
When interest rate > 0 (PMT formula): Monthly saving = Goal × r ÷ ((1 + r)n − 1)
where r = annual rate ÷ 1200 (monthly rate) and n = years × 12 (number of months)
How it works
This calculator finds the fixed monthly deposit needed so that the future value of those deposits equals your savings goal, assuming contributions are made at the end of each month. When a non-zero annual interest rate is supplied, it applies the standard annuity payment-to-future-value formula, compounding monthly. When the rate is zero it simply divides the goal by the total number of months.
The result assumes consistent monthly contributions and a constant interest rate throughout the saving period; missed contributions or rate changes would require recalculation.
Worked example
- Savings goal = $12,000; Years = 1 (n = 12 months); Annual rate = 0%
- Because rate = 0, use the simplified formula: Monthly saving = Goal ÷ n
- Monthly saving = $12,000 ÷ 12 = $1,000
Monthly saving = $1,000
Common mistakes to avoid
- Entering the goal in today's dollars without adjusting for inflation, underestimating the nominal amount needed in 20-30 years.
- Using the annual interest rate as the monthly rate directly (dividing by 100 instead of 1,200) — this overstates monthly growth by ~12x.
- Forgetting to add an existing balance as a head start, recalculating as if starting from zero and overestimating the required monthly contribution.
Key terms
- Future value (FV)
- The total amount your account will hold at the end of the saving period, equal to the savings goal in this context.
- PMT (payment)
- The fixed periodic contribution made each period; here it is the required monthly deposit.
- Annuity
- A series of equal payments made at regular intervals; monthly savings contributions form an ordinary annuity.
- Compounding
- The process by which interest earned in one period is added to the principal so that it earns interest in subsequent periods.
- Monthly rate
- The annual interest rate divided by 12, used for month-by-month compounding calculations.
Frequently asked questions
- Should I account for taxes on interest when using this calculator?
- Yes for taxable accounts. If your marginal tax rate is 25% and the rate is 5%, the after-tax rate is 3.75%. Use the after-tax rate to get a realistic savings estimate.
- What if I can only save a fixed amount, not the calculated amount?
- Extend the timeline or reduce the goal. You can reverse the formula: plug in your fixed monthly contribution and solve for how many months until you reach the target.
- Does the calculator include employer 401(k) matching?
- No — this is a general savings formula. If you have employer matching, add the matched amount to your monthly contribution before entering it.