Monthly Savings Needed $375.00
Total Deposits $9,000
Interest Earned $0
Starting Balance $1,000
Final Balance $10,000
Savings Goal Calculator
Calculate how much you need to save each month to reach your financial goal. Perfect for planning vacations, emergency funds, or major purchases.
How Savings Goal Calculations Work
The calculator determines the monthly savings needed using the future value formula for regular deposits:
- Without interest: Monthly = (Goal - Current) รท Months
- With interest: Uses the PMT formula accounting for compound growth
- Current savings are grown with interest before calculating remaining need
Even a small interest rate can help you reach your goal faster or with smaller monthly contributions.
Example Calculation
To save $10,000 in 24 months starting with $1,000 at 4% APY:
- Monthly savings needed: $362.45
- Total you'll deposit: $8,699
- Interest earned: $301
- Your $1,000 grows while you save
FAQ
- How much should I save each month?
- A common guideline is the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and debt repayment. Adjust based on your goals and situation.
- Does the interest rate matter for short-term goals?
- For goals under 2 years, interest has minimal impact. For longer-term goals (5+ years), even a modest interest rate can significantly reduce how much you need to save.
- Should I include my current savings?
- Yes, include any savings you already have toward this goal. The calculator accounts for this and calculates the additional monthly savings needed.
- What if I can't afford the monthly amount?
- You can either extend your timeline, reduce your goal amount, or look for ways to increase income or reduce expenses.