Savings Goal Calculator
Monthly saving needed to reach a target, from starting amount, years, and return.
What it does
A savings goal turns a wish into a monthly figure. Name the target, count what is already saved, and the math spreads the rest across the months left, with interest covering part of the trip. The tool above does that split with monthly compounding.
The default tells a common story: $50,000 wanted in 5 years, $5,000 banked today, 6% yearly return. The answer is $619.98 a month, $42,198.56 paid in by hand, and $7,801.44 added by growth. Raise the return to 8% and the monthly figure drops; stretch to 7 years and it drops further.
Starting cash punches above its weight because it compounds from day one. That is why the same $50,000 goal needs $716.64 a month from zero but $619.98 with $5,000 already in place. Time works the same way: each extra year hands compounding more months to multiply.
Treat the return as a guess, not a promise. Bank rates, bond yields, and market swings move real balances away from any fixed percent. Revisit the plan yearly, and read the monthly figure as a floor to beat rather than a sum to hit exactly.
How to use
- Type the target balance you want at the end.
- Enter what is already saved today, or 0 to start fresh.
- Set the years left to save.
- Set the yearly return you expect, such as 4 or 6.
- Read the monthly deposit first, then what you pay in and what growth adds.
Formula
- goal ($)
- Desired final balance.
- saved ($)
- Amount already banked, growing at r per month.
- r, n
- Monthly rate and total month count.
Deposits land at the end of each month and compound monthly, matching the SEC savings goal method. Taxes, fees, and rate changes sit outside the sum.
Worked example
Example: $50,000 in 5 years from $5,000 at 6%
Defaults: target 50000, saved 5000, years 5, return 6.
- Monthly rate: 6 / 100 / 12 = 0.005. Months: 5 x 12 = 60.
- Grow the start: 5,000 x 1.005^60 = $6,744.25.
- Gap left: 50,000 minus 6,744.25 = $43,255.75.
- Annuity factor: 0.005 / (1.005^60 minus 1) = 0.014333. Times gap = $619.98.
- Tool shows $619.98 a month, $42,198.56 paid in, $7,801.44 growth.
Reference table
| Return | Per month | You pay in |
|---|---|---|
| 0% | $833.33 | $50,000.00 |
| 3% | $773.43 | $46,406.07 |
| 6% | $716.64 | $42,998.40 |
Limits
- Fixed return assumed; real rates drift year to year.
- Monthly end of month deposits; payday timing shifts results slightly.
- Ignores taxes, fees, and inflation eating the goal.
- Rounds to cents; long horizons magnify small rate errors.
Common mistakes
- Forgetting the starting amount, which overstates the monthly need.
- Using a nominal rate while ignoring fees and taxes.
- Counting on stock returns as if they were bank interest.
- Saving the figure but skipping months when budgets tighten.
- Setting the goal in old dollars while prices keep rising.
Try it yourself
Quick checks. Answers sit tucked under each question.
$20,000 in 4 years from zero at 5%?
$377.25 a month, $18,108.12 paid in, $1,891.88 growth.
$100,000 in 10 years from $10,000 at 7%?
$461.64 a month, $65,397.16 paid in, $34,602.84 growth.
$12,000 in 2 years from zero at 0%?
12,000 / 24 = $500.00 a month, no growth.
Questions
How much monthly for $50,000 in 5 years?
$619.98 from $5,000 at 6%, or $716.64 from zero.
Does the starting amount matter much?
Yes. $5,000 today cuts about $97 a month off this goal at 6%.
What if the return is zero?
Divide the gap by months: $12,000 over 2 years is $500.00 flat.
Monthly or yearly compounding?
This page compounds monthly with end of month deposits.
Why is growth smaller than deposits?
Short horizons and modest rates leave compounding little time to work.
Should inflation change the goal?
Yes. Price a goal in future dollars or raise it by expected inflation first.