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Calculate the monthly savings for your goal

A savings goal becomes easier to relate to when it is turned into an amount per month. Enter how much you want to end up with, how much you already have, and when the money should be ready.

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Applies to the amounts in this calculator.

The amount you want to have when the period ends.

USD

The amount you already have. Enter 0 if you start from zero.

USD

How long you have to reach the goal. Choose years or months.

The return per year you want to assume. Enter 0 for savings without a return.

%

Before tax. Deposits at the end of each month. The amount is rounded up to the nearest cent.

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Worked example
  • Target amount: 1,000,000.00 USD
  • Starting amount: 100,000.00 USD
  • Term: 20 years
  • Annual return: 7 %

Result

Deposit per month

1,208 USD

Total paid in

389,886 USD

Return

610,115 USD

Final amount

1,000,001 USD

Working

  1. 20 years = 240 months
  2. i = (1 + r/100)^(1/12) − 1
    (1 + 7/100)^(1/12) − 1 = 0.005654
  3. M = (goal − K × (1 + i)^N) × i / ((1 + i)^N − 1)
    (1,000,000.00 USD − 100,000.00 USD × (1 + 0.005654)^240) × 0.005654 / ((1 + 0.005654)^240 − 1) = 1,207.86 USD
  4. deposit = M rounded up to the nearest cent
    1,207.86 USD rounded up = 1,207.86 USD
  5. final amount = K × (1 + i)^N + deposit × ((1 + i)^N − 1) / i
    100,000.00 USD × (1 + 0.005654)^240 + 1,207.86 USD × ((1 + 0.005654)^240 − 1) / 0.005654 = 1,000,001.33 USD
  6. paid in = K + deposit × N
    100,000.00 USD + 1,207.86 USD × 240 = 389,886.40 USD
  7. return = final amount − paid in
    1,000,001.33 USD − 389,886.40 USD = 610,114.93 USD

The calculator finds the fixed monthly deposit that matches the goal. Any annual return is included as an assumption you can change yourself.

From target amount to monthly deposit

Without interest, the calculation is simple: monthly savings = (target amount − starting amount) / number of months.

If you want 60,000 in three years and start from zero, you need to set aside about 1,666.67 every month. If you already have 24,000, the required deposit falls to 1,000.

Example with a return over 20 years

With 100,000 at the start, a target of 1,000,000 and 20 years of saving, about 1,207.86 per month is required at an effective annual return of 7%. The example uses deposits at the end of the month and ignores tax and costs.

Also try a lower return

Try lowering the return percentage and see how the deposit changes. It gives a concrete picture of how much the plan depends on the return and how much comes from your own budget.

A future target amount is stated in future money. If the money is meant for a specific purchase, price increases can change what you need. The real return calculator shows the difference between an amount in the account and its purchasing power.

If the calculated growth of the starting capital already reaches the goal, the required deposit is shown as zero.