How much to save each month to reach your goal
You have a target in mind: a car down payment, an emergency fund, the money for a trip. The awkward question is always the same — how much do I need to set aside every month to get there on time? This calculator gives you that number in a second, and if your money earns interest in a savings account or certificate, it shows how much of the goal the bank chips in for you.
How to use it
Fill in four fields:
- Savings goal: the total amount you want to reach.
- Starting amount: what you already have set aside today (leave it at 0 if you start from scratch).
- Term in months: how many months until your deadline.
- Annual interest rate: the return on your account or certificate. If the money earns nothing, leave it at 0.
Pick a currency and you get three results: the monthly contribution, the total you put in, and the interest earned.
The formula
With no interest the split is direct — divide what is left by the number of months.
payment = (goal − start) / monthsWith interest you use the annuity payment formula. If r is the monthly rate (the annual rate divided by 12) and n is the number of months, the deposit that grows your savings up to the goal is:
payment = (goal − start × (1 + r)^n) × r / ((1 + r)^n − 1)The term start × (1 + r)^n is what your starting amount will be worth at the end of the term; your monthly deposits cover the rest, each one compounding until the target date.
| Item | Symbol | Example |
|---|---|---|
| Goal | goal | 120,000 |
| Starting amount | start | 0 |
| Term (months) | n | 24 |
| Annual rate | — | 6% |
| Monthly rate | r | 0.5% |
Worked example
You want to reach 120,000 in 24 months, starting from zero.
With no interest the split is simple: 120,000 ÷ 24 = 5,000 a month. Over two years you deposit exactly the goal and earn nothing extra.
Now with an account paying 6% a year (r = 0.005). Raise (1.005)^24 = 1.127160. Then:
payment = 120,000 × 0.005 / (1.127160 − 1)
= 600 / 0.127160
= 4,718.47 a monthThe deposit drops from 5,000 to 4,718.47. In total you put in 4,718.47 × 24 = 113,243.36 out of pocket, and the bank adds 6,756.64 in interest to complete the 120,000. Compounding saves you almost 7,000 versus saving with no return.
If you also already have 20,000 saved, that amount grows to 20,000 × 1.127160 = 22,543.20, and the monthly deposit falls to 3,832.06.
Frequently asked questions
What if I leave the rate at 0?
The calculator uses the simple split: (goal − start) / months. That is the right model when you keep the money in cash or an account that pays no interest. Interest earned will show as 0.
Does interest compound each month?
Yes. The model assumes monthly compounding: every deposit and your starting amount earn interest that is reinvested month after month. That is why the required payment is smaller than in plain saving.
Why does my monthly payment have cents?
Because it is the exact figure to land on the goal. In practice you can round up: paying a little more just means you reach the target slightly early or with a small cushion.
Does it work for any currency?
Yes. Choose the currency in the selector and every amount is formatted with its symbol. The math is the same; only the way the money is displayed changes.
Is this a guaranteed return?
No. It is an informational estimate with a constant rate. Real returns on an account or certificate can vary, and some charge fees or tax the interest, which this tool does not subtract.