Savings goal calculator
Estimate the monthly contribution needed to reach a savings target using an initial balance, time horizon, and interest assumption.
Your assumptions
How the calculation works
C = max(0, (T − P × (1 + r)^n) × r / ((1 + r)^n − 1))T is the target, P the amount already saved, r the nominal annual interest rate divided by 12, and n the number of months. At zero interest, C = max(0, (T − P) / n). If your existing savings already reach the target under the assumptions, no extra contribution is required.
Questions, answered.
Should I enter an effective or a nominal annual rate?
This model expects a nominal annual interest rate and compounds monthly. If an account quotes an effective annual yield (sometimes called APY or AER), convert it to a monthly-equivalent nominal rate: 12 × ((1 + effective yield)^(1/12) − 1), with rates as decimals. Check how the account calculates and pays interest.
What if rates change?
The calculator holds the rate constant. Real savings rates may change; compare a lower-rate scenario and check the terms of the account.
Is the displayed monthly amount exact?
The main result is rounded to the nearest currency unit for readability. The calculation and chart use the unrounded amount.
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