Holiday Savings Plan Calculator

Work out holiday savings plan instantly with clear inputs, formula shown and shareable results.

About Holiday Savings Plan Calculator

The monthly contribution is the shortfall divided by the annuity factor, allowing for the interest that both the existing balance and each new contribution will earn. Over nine months the interest is small but the discipline of a fixed monthly figure is the real value.

Formula

Savings plan

monthly = shortfall / (((1 + r)^n - 1) / r), with existing savings grown at (1 + r)^n

Worked example

With the default values below, Holiday Savings Plan Calculator returns Monthly saving required of $296.61. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total holiday cost: 3,200
Months until departure: 9 months
Already saved: 480
Savings interest rate: 4 %

Results

Monthly saving required: $296.61
Still to save: $2,705.41
Interest earned: $50.47
Weekly equivalent: $68.22

Step by step

1Values used
2Savings plan
3Monthly saving required= 296.61
4Still to save= 2,705.41
5Interest earned= 50.47
6Weekly equivalent= 68.22

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Should I use a separate account?

Yes. A named savings pot resists being dipped into, and many banks now offer goal-based sub-accounts for exactly this purpose.

What if the holiday is already booked?

Then the deposit deadline and balance date matter more than the departure date. Plan to the balance due date, which is usually 8-12 weeks before travel.