Two ways to plan your savings
- Monthly amount – you know your goal and your deadline. The calculator tells you how much to save each month.
- Time to goal – you know how much you can save each month. The calculator tells you how long it will take.
Both modes include what you have already saved and the interest your savings earn, compounded monthly.
The formula behind it
The monthly saving needed is:
PMT = (Goal − Current × (1 + i)n) × i ÷ [(1 + i)n − 1]
where i is the monthly interest rate and n is the number of months. If you earn no interest, it is simply the amount still needed divided by the number of months.
Example
You want 50,000 in 5 years, you already have 5,000, and your savings earn 5% a year. You would need to save about 640 a month. Interest does part of the work — you deposit around 43,000 and interest adds the rest.
Popular savings goals
- Emergency fund – many experts suggest 3–6 months of essential expenses.
- House deposit – often 10–20% of the home price, plus closing costs.
- Car – saving in advance avoids interest on a car loan.
- Education or travel – set a clear date and let the calculator give you a monthly target.
Tips to reach your goal faster
- Automate a transfer on payday so saving happens first.
- Keep savings in a high-interest account separate from spending money.
- Put windfalls — bonuses, gifts, tax refunds — straight into your goal.