Calculate how much you need to save each month to reach your financial target. Enter your goal amount, timeframe, current savings, and expected annual interest rate to see your required monthly savings and projected totals.
How to Use
- Savings Goal Amount: The total amount you want to have saved by the end of your chosen period.
- Time to Reach Goal: How long you have to reach your goal (choose months or years).
- Initial Savings: Your current savings (optional).
- Interest Rate: The expected annual interest rate (as a percentage).
Click Calculate to see:
- Required Monthly Savings: The amount you need to save each month.
- Total Savings at Goal: The projected total you’ll have at the end of the period.
- Total Interest Earned: The amount of interest your savings will earn over the period.
Click Reset to clear the form.
Calculation Details
This calculator uses the future value of a series formula with monthly compounding:
- If the interest rate is 0%, the required monthly savings is simply ((\text{Goal Amount} - \text{Initial Savings}) / \text{Number of Months}).
- If there is an interest rate, it solves for the monthly deposit needed to reach your goal, factoring in compound interest.
Formula with interest: [ FV = P_0 * (1 + r)^n + PMT * {( (1 + r)^n - 1 )}/{r} ]
Where:
- (FV) = Future Value (goal amount)
- (P_0) = Initial Savings
- (r) = monthly interest rate
- (n) = number of months
- (PMT) = monthly deposit (solved for)
Example
Suppose you want $10,000 in 3 years, have $1,000 saved, and expect a 4% annual interest:
- Savings Goal: $10,000
- Time: 3 years (36 months)
- Initial Savings: $1,000
- Interest Rate: 4%
The calculator will show the monthly amount to save, your final balance, and the total interest earned.
Notes
- All calculations assume monthly deposits and monthly compounding.
- Negative or unrealistic values are not accepted.
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