Savings Goal Calculator

Set the amount you need and the date you need it, and this works backwards to the monthly deposit that gets you there.

Every payment is the same, but the interest share shrinks as the principal share grows.

Working backwards from the goal

Most savings advice starts with what is left over at the end of the month, which is why most savings goals are missed. This calculator starts from the target instead and solves for the deposit, using the future value of an annuity rearranged for the payment:

PMT = FV × r / ((1 + r)ⁿ − 1)

Anything already saved is grown forward at the same rate first, then subtracted from the target, so you only have to fund the gap.

Make it automatic

A standing order dated for the day after payday consistently outperforms good intentions. It removes the monthly decision, and the money is gone before it can be reallocated to something else.

Choosing the rate

For a goal within two or three years, use a rate you can actually get on a high-yield savings account or fixed-term deposit, and keep the money out of the stock market — a 20% drawdown a month before completion on a house deposit is not a risk worth carrying. For goals more than five years out, a higher long-run return becomes reasonable, with the volatility that comes with it.

Emergency funds first

Before saving towards anything optional, most planners suggest three to six months of essential spending in an instant-access account. Calculate that figure here first, then start on the goal that comes after it. Once you are saving, the compound interest calculator shows how those deposits grow over time.

Frequently asked questions

How much should an emergency fund be?

Three to six months of essential expenses is the common benchmark, with the higher end suggested for irregular income or a single-earner household. Multiply your monthly essentials by the number of months and use that as the target.

What if I cannot afford the monthly amount?

Extend the deadline, lower the target, or split the goal in two. Increasing the assumed return to close the gap on paper does not close it in reality.

Does this account for inflation?

No. If the target is several years out and the cost will rise, raise the target by expected inflation or subtract inflation from the interest rate to see the result in today's money.

Should the deposit go in at the start or the end of the month?

This assumes the end of the month, which is the more conservative figure. Depositing earlier earns slightly more interest.