Work out holiday savings plan instantly with clear inputs, formula shown and shareable results.
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.
Savings plan
monthly = shortfall / (((1 + r)^n - 1) / r), with existing savings grown at (1 + r)^n
Yes. A named savings pot resists being dipped into, and many banks now offer goal-based sub-accounts for exactly this purpose.
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.