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Savings goal calculator

You have a goal and a time frame, such as a down payment, a trip or a car. The calculator shows which monthly amount gets you there.

How this is calculated

What it calculates

Which monthly amount you need to save to reach a target in a fixed period.

Your inputs

  • Target amount: what should be there at the end.
  • Already saved: the amount you have today.
  • Interest per year: assumed return, 0 is allowed.
  • Period: in years, calculated in whole months.

The calculation

Amount = (goal − start × (1 + i)n) ÷ ( ((1 + i)n − 1) ÷ i × (1 + i) )
i = annual rate ÷ 12, n = number of months. Without interest: amount = (goal − start) ÷ n

What the result means

The amount is what you have to put aside every month. The shorter the period, the less interest helps and the higher the amount.

Example

Default values: goal €20,000, already saved €2,000, 3 percent, 5 years (60 months). Monthly amount: €273. Paid in: €18,365, interest: €1,635. Without interest it would be €300 per month.

A savings goal becomes concrete once it has an amount and a date. Check whether the monthly amount fits your budget before you commit.

A related lesson is Goal and time horizon.

Frequently asked questions

Why is the monthly amount lower with interest?

Because interest covers part of the goal. The longer the period, the bigger its share.

How reliable is the interest assumption?

It is not reliable. Interest on savings accounts changes. Try 0 percent to see the amount without any help from interest.

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