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Savings Goal Calculator

Enter your goal details to see the required monthly contribution.

Set a target amount, a timeframe in years, and an expected annual return rate, and this calculator works out how much you need to set aside each month to get there. It uses the future value of an annuity, so it accounts for the growth your contributions earn along the way and shows how much comes from your own money versus returns.

How to use

  1. Enter the target amount you want to reach.
  2. Enter the timeframe in years that you have to save.
  3. Enter the annual return rate you expect (use 0 for a plain savings plan with no growth).
  4. Read the required monthly contribution, total contributed, and returns earned in the results panel.
  5. Adjust any field to compare scenarios, or use Reset to start over.

Examples

  • Target 100000 over 10 years at a 6 percent annual return needs about 607.17 per month, with roughly 72860 contributed and the rest from returns.
  • Target 100000 over 10 years at 0 percent needs about 833.33 per month, since every unit comes from your own contributions.
  • Target 50000 over 5 years at 7 percent needs about 694.34 per month, with about 41661 contributed.

FAQs

How is the monthly contribution calculated?
It solves the future value of an annuity for the payment. With i as the monthly rate (annual rate divided by 1200) and n as the number of months, the contribution is target times i, divided by ((1 plus i) to the power n, minus 1), divided by (1 plus i). When the rate is 0, it is simply the target divided by the number of months.
What return rate should I use?
Use a rate that reflects where the money will sit. A high yield savings account might be a few percent, while a diversified investment portfolio is often modelled around 6 to 8 percent. If you want a conservative plan with no growth assumption, enter 0.
Does it assume contributions are made at the start or end of the month?
It assumes contributions are made at the start of each month, which is why the formula divides by an extra (1 plus i) factor. That gives each contribution slightly more time to grow.
Why does total contributed plus returns equal my target?
The target is the future value you want. Total contributed is the sum of your monthly payments, and returns earned is the growth that makes up the difference, so the two add up to the target.
Is any currency assumed?
No. The calculator is currency agnostic and works on the numbers you enter, so the same result applies whether you are thinking in dollars, euros, rupees, or anything else.
What if I already have some savings?
This tool sizes contributions for a goal started from zero. If you have a lump sum already, subtract its projected future value from your target first, then enter the remaining amount here.

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