Savings Goal Calculator

Reaching a savings goal

Saving a fixed amount every month, with interest compounding along the way, is an annuity. Its future value is the starting balance grown by interest, plus every monthly deposit grown by whatever interest it earns before the target date.

FV = P₀·(1+i)ⁿ + PMT·((1+i)ⁿ − 1) / i

Here i is the monthly interest rate (annual rate ÷ 12) and n the number of months. This calculator rearranges that relationship two ways: themonthly saving needed to hit a goal by a chosen date, or thetime a set monthly amount will take. Interest and any starting balance are included.

Worked example

To reach 10 000 in 5 years from nothing, with no interest, you'd need 10 000 / 60 ≈ 166.67 per month. Add 3% annual interest and the required amount drops to about 154 — the interest does part of the work, and the gap grows the longer you save. Switch to "time to reach goal" and enter a monthly amount to see how many years it takes instead.

Assumptions

Interest is compounded monthly and the rate is assumed constant; deposits are made at the end of each month. Real accounts vary rates, and tax or fees may apply — treat the result as a planning estimate. For a lump sum with no monthly deposits, use thecompound interest calculator.