How to use the savings goal calculator
- 1Choose How long will it take, or How much per month.
- 2Enter your goal and how much you have saved already.
- 3Enter your monthly saving, or the number of months you have.
- 4Add your savings account interest rate if you earn any.
- 5Read the result and watch how deposits and interest build up on the chart.
How it works
The calculator adds your monthly saving and the interest earned each month, compounding monthly, until the balance reaches your goal. In the second mode it solves for the monthly amount needed to reach the goal in the time you have:
monthly saving = (goal − savings × (1 + r)ⁿ) × r ÷ ((1 + r)ⁿ − 1)
where r is the monthly interest rate and n the number of months. With no interest it is simply what is left to save divided by the number of months.
Making the plan work
- Automate it. A standing transfer on payday makes saving the default.
- Start with an emergency fund. Many people aim for several months of essential spending before other goals.
- Keep the rate realistic. Use the rate your savings account actually pays, and remember rates can change.
Interest makes a bigger difference over long periods. For short goals, the monthly amount matters far more than the rate.
Frequently asked questions
Does the calculator include interest?
Yes, if you enter a rate. Interest is compounded monthly. Enter 0 to ignore interest.
What if I already have some savings?
Enter them in Saved so far. They count towards the goal and earn interest too.
Are taxes on interest included?
No. Results are before any tax on interest, which depends on where you live.
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