Find out how much you need to save each month to reach a savings goal by a date, or how long it will take at the amount you can afford, with interest added each month.
$
$
% a year
Savings account rate or expected return
0–11
Save each month
$463.22
You pay in
$18,676
Interest earned
$1,324
Balance at the end
$20,000
Year-by-year balance
Year
Paid in
Interest
Balance
1
$7,559
$203
$7,762
2
$13,117
$642
$13,759
3
$18,676
$1,324
$20,000
Assumes you save at the start of each month and interest compounds monthly at the yearly rate ÷ 12, like our SIP calculator. Tax on interest isn't included.
How to use the savings goal calculator
Enter your savings goal: a house deposit, emergency fund, car or holiday.
Enter what you've saved so far and the interest rate or expected return.
Choose Monthly saving needed and enter the time you have, or Time to reach the goal and enter what you can save each month.
Formula
The calculator assumes you save at the start of each month and interest is added monthly at the yearly rate ÷ 12, the same method as our SIP calculator. After n months, savings S and a monthly amount P grow to:
FV = S × (1 + i)n + P × (1 + i) × ((1 + i)n − 1) ÷ i, with i = yearly rate ÷ 12
Setting FV to your goal and solving for P gives the monthly saving needed; solving for n gives the number of months.
Worked example: $20,000 in 3 years
i = 4% ÷ 12 = 0.003333, n = 36, so (1 + i)36 = 1.127272.
Your $2,000 grows to $2,254.54, leaving $17,745.46 to save.
Each $1 saved monthly grows to (1 + i) × (1.127272 − 1) ÷ i = 38.3088.
P = $17,745.46 ÷ 38.3088 = $463.22 a month. You pay in $18,676 in all and earn $1,324 of interest.
Tips
Set up an automatic transfer on payday for the monthly amount, so saving happens first.
Keep money you need within a few years somewhere safe; for longer goals, compare returns with the compound interest and interest rate calculators.
For a goal many years away, raise the target for inflation first: the inflation calculator shows how much prices have risen in the past.
An estimate for planning. Returns on investments aren't guaranteed.
Frequently asked questions
How much do I need to save each month to reach my goal?
Take off what your current savings will grow to, then divide the rest by what $1 saved every month grows to by the deadline. To reach $20,000 in 3 years with $2,000 already saved at 4% a year, you need $463.22 a month. Without interest it would be ($20,000 − $2,000) ÷ 36 = $500.00.
How long will it take to save a certain amount?
Switch to "Time to reach the goal" and enter what you can save each month. Saving $500 a month on top of $2,000 at 4% reaches $20,000 in 2 years 10 months. The calculator rounds up to the month in which the balance first reaches the goal.
Does the interest rate make much difference?
Over a few years, less than saving more: at 4% the interest on the 3-year example is $1,324 of the $20,000. Over longer periods compounding matters more, which is why starting early helps. Giving yourself 5 years instead of 3 lowers the monthly amount to $263.95.
What rate should I use?
For a savings account or fixed deposit, use the yearly rate your bank pays; if it only quotes an AER or APY, the interest rate calculator converts it to the nominal rate. For investments, use a cautious expected return: returns aren't guaranteed and can be negative in some years. Use 0% to see the amount you'd need with no growth at all.
Is tax on the interest included?
No. Interest and investment gains may be taxed depending on the account and your country, which would make the growth a little smaller. Tax-free accounts (an ISA in the UK, a Roth IRA in the US, PPF in India) avoid that.