Savings goal calculator
Work out the monthly savings a goal needs, or flip it around to see what a fixed monthly deposit grows into.
Savings result
Required monthly savings
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Progress toward goal0%
- Total deposits
- -
- Interest earned
- -
- Ending balance
- -
- Daily equivalent
- -
Balance growth over time
- Deposits
- Total balance
How it works
A savings goal calculator uses the future value of an annuity to compute how much you must save each month to reach a target amount, or, run in reverse, what a fixed monthly deposit grows into over time.
- Pick a direction
Solve for the monthly amount a goal needs, or project a deposit you already have in mind.
- Enter your numbers
Current savings, time frame in months and the interest rate you expect.
- Read the split
The result separates your own deposits from the interest compounding earns for you.
The savings formula
Saving toward a goal solves the future-value-of-annuity formula for the monthly payment:
PMT = (FV − PV × (1+r)n) × r / ((1+r)n − 1)
FV is your target amount, PV is current savings, r is the monthly interest rate (APY divided by 12) and n is the number of months. Growing a fixed deposit runs the same formula forward instead, projecting the ending balance from PV, the monthly deposit and n.
For a $50,000 goal starting from $5,000 over 60 months, saving $750 a month gets you there at 0% APY, but only about $651 a month is needed at 4.5% APY, since interest does part of the work.
Before you rely on the estimate
The calculator assumes a constant interest rate and equal monthly deposits. Real savings account rates move with the market, and interest earned above $10 a year is normally reported to you as taxable income on a 1099-INT.
Frequently asked questions
What formula does the savings goal calculator use?
PMT = (FV minus PV times (1+r) to the n) times r, divided by ((1+r) to the n minus 1), where FV is your target amount, PV is current savings, r is the monthly rate (APY divided by 12) and n is the number of months. This is the future value of an ordinary annuity formula, rearranged to solve for the monthly payment.
How does a higher APY affect my required monthly savings?
A higher APY reduces the required monthly deposit because interest does more of the work. Saving toward a $50,000 goal from $5,000 over 5 years (60 months) requires $750 a month at 0% APY, but only about $651 a month at 4.5% APY. High-yield savings accounts currently around 4 to 5% APY can meaningfully lower what you need to set aside.
Can I see how a fixed monthly deposit grows instead of solving for a target?
Yes. Switch to Grow a fixed deposit mode, enter the amount you plan to deposit each month, and the calculator projects the ending balance and interest earned over your time frame instead of solving for a required deposit. The two modes use the same annuity formula in opposite directions.
Does the calculator show both deposits and interest earned separately?
Yes. The results show total deposits, interest earned, and the ending balance, plus a chart of both lines over time, so you can see how much of your final balance is money you put in versus interest compounding added.
Can I use this for a short-term goal like a vacation fund?
Yes, the time frame accepts any number of months from 1 to 600. For a $5,000 vacation fund starting from $0 in 12 months at 4% APY, the required monthly savings is about $409. For longer goals such as a house down payment, the interest component becomes increasingly significant.