Savings Goal Calculator — Monthly Saving for a Target Amount

Calculator

A savings goal calculator works backward from a target amount, period, and annual return to the required monthly deposit.

What is it

The required monthly deposit is the future-value-of-annuity formula solved in reverse. Assuming equal monthly deposits with monthly compounding, the deposit is target × r ÷ ((1+r)ⁿ - 1) where r is the monthly return and n is the number of months. With a 0% return it is simply the target divided by the months. Taxes and fees are not included.

monthly deposit = target × r / ((1+r)ⁿ - 1) (r = annual return / 12 / 100, n = months; target / months when the return is 0%)

How to use

  1. 1Enter the target amount.
  2. 2Enter the saving period in months.
  3. 3Enter the expected annual return (%) and check the required monthly deposit.

Reference

Savings Goal Calculator — Monthly Saving for a Target Amount Reference
TargetPeriodAnnual returnMonthly deposit (approx.)
1000000024 mo3%404812
5000000060 mo4%754158
1200000012 mo0%

Sources & standards

FAQ

How much must I save monthly to reach 10,000,000 in 2 years?

About 404,812 per month assuming a 3% annual return with monthly compounding, or about 416,667 per month with no return.

Does the result include tax on interest?

No. The calculation uses the pre-tax return, so after interest income tax and fees the actual required deposit can be slightly higher.

Is savings goal calculator input sent to a server?

No. This tool runs in your browser and does not send input to a server.

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