How to plan a savings goal
- Enter how much you want to save, how much you already have, and when you want to reach the goal.
- Add the interest rate of your savings account (or 0 for cash). The calculator shows how much to put away each month and each week.
- Prefer a fixed budget? Enter what you can save per month in the second box to see how long it will take.
How the monthly amount is calculated
The money you already have grows with interest: after n months it is worth H × (1 + i)ⁿ, where i is the monthly rate (annual rate ÷ 12). The rest of the goal comes from regular deposits, which form an annuity worth P × ((1 + i)ⁿ − 1) ÷ i. Solving for the deposit P gives the monthly amount shown. With 0% interest it is simply the amount still needed divided by the number of months.
The time-to-goal answer reverses the same formula: n = ln((G·i + P) ÷ (H·i + P)) ÷ ln(1 + i), rounded up to whole months.
Tips for reaching a goal
Set up an automatic transfer on payday for the monthly amount, so saving happens before spending. For goals under about three years, such as a holiday, a car or an emergency fund, use a savings account rather than investments, because a market dip could set you back right when you need the money. Interest makes a modest difference over short periods; the amount you save matters far more. Interest is shown before tax, and nothing you enter leaves your browser.
How much should I save each month to reach 10,000 in 2 years?
About 416.67 a month with no interest. At 4% a year it drops to roughly 401. Enter your own numbers above.
How big should an emergency fund be?
A common guideline is three to six months of essential expenses. Use that figure as your goal.
Does the calculator include inflation?
No. If your goal is far away, raise it to allow for rising prices; the inflation calculator can estimate by how much.