Savings Goal Calculator
Enter your savings goal, what you've already saved, your timeframe, and an expected interest rate to calculate exactly how much you need to set aside each month.
How the Savings Goal formula works
Solving the future-value-of-an-annuity formula for the monthly contribution:
Contribution = ( Goal − Current × (1+r)ⁿ ) / ( ((1+r)ⁿ − 1) / r )
Where r is the monthly interest rate and n is the number of months. If the interest rate is zero, this simplifies to (Goal − Current) / n.
Step-by-step calculation
- Project how much your current savings alone will grow to by the target date, using compound interest.
- Subtract that projected amount from your goal to find the remaining gap.
- Divide the gap by the future-value-of-an-annuity factor for your timeframe and rate to find the required monthly contribution.
Worked example
A $20,000 goal in 36 months, starting with $2,000 saved, at 4% annual interest: the current savings grow to about $2,254 on their own, leaving roughly $17,746 to close with monthly contributions — working out to about $460/month.
Frequently asked questions
What if I don't expect to earn any interest?
Enter 0% for the interest rate — the calculator will simply divide the remaining gap evenly across your timeframe.
Does this account for taxes on interest earned?
No — this is a pre-tax projection. If your savings are in a taxable account, actual growth may be somewhat lower depending on your tax situation.