Savings Goal Calculator
$
$
5.0%
60 mo
Required Monthly Deposit$441.14
Total Deposits$26,468.22
Interest Earned$3,531.78
Growth of Current Savings$0.00
The Savings Goal Calculator solves a practical question in reverse: instead of asking how much a deposit will grow to, it tells you exactly how much to set aside each month to hit a target amount by a chosen date. It uses the future-value annuity formula, accounts for any money you have already saved, and credits the compound interest your balance earns along the way.
Formula
PMT = (FV − PV·(1+i)^n) · i / ((1+i)^n − 1), where i = annualRate/12
- FV
- Savings goal (future value)
- PV
- Current savings balance
- i
- Monthly interest rate (annual rate ÷ 12)
- n
- Number of monthly deposits
How it works
- Enter your savings goal, any current balance you already have, the annual interest rate your account earns, and the number of months until your deadline.
- The calculator grows your starting balance forward, then solves the annuity formula for the level monthly deposit that closes the remaining gap.
- It reports the required monthly deposit, the total of all your deposits, the interest earned, and how much your current savings will grow to on their own.
Worked example
Save $30,000 in 60 months starting from zero, with savings earning 5% annual interest.
- Monthly rate i = 5% ÷ 12 = 0.41667%.
- Growth factor (1 + i)^60 ≈ 1.28336.
- PMT = 30,000 × i ÷ (1.28336 − 1) ≈ $441.14 per month.
- Over 60 months you deposit about $26,468, and interest supplies the rest.
Deposit about $441.14 per month to reach $30,000 in five years.
Frequently asked questions
- Does the calculator assume deposits earn interest too?
- Yes. Each monthly deposit is treated as an ordinary annuity that compounds for the remaining months, which is why the required deposit is lower than simply dividing the goal by the number of months.
- What if I already have some money saved?
- Enter it as your current balance. The calculator grows that balance forward at your interest rate and only asks you to fund the gap that remains, reducing the monthly deposit you need.
- What happens if my current savings already reach the goal?
- If your starting balance grows past the target on its own within the time frame, the required monthly deposit is shown as zero because no additional saving is needed.
- What interest rate should I enter?
- Use the realistic annual yield of where the money sits — perhaps 4 to 5% for a high-yield savings account or money market, and 0% for a checking account. A higher rate lowers the monthly deposit required.