Savings Goal Calculator
Find out how much to save each month to reach a target amount by a deadline.
Inputs
Monthly Contribution Needed
$662.08
Total You'll Contribute
$39,725
Interest Earned
$5,275
Step by step
Monthly interest rate: Annual rate ÷ 12
4.00% ÷ 12
= 0.3333%
Total months to goal
= 60 months
Future value of current savings at month N: PV × (1 + i)ᴺ
$5,000 × (1 + 0.003333)^60
= $6,104.98
Remaining amount still needed from contributions
$50,000 − $6,104.98
= $43,895.02
Monthly contribution needed: (Goal − Grown) × i / ((1 + i)ᴺ − 1)
$43,895.02 × 0.003333 ÷ (0.2210)
= $662.08
How it works
This solves for the monthly deposit required so that your current savings, plus contributions, plus interest, grow to your goal by the target date.
Formula
Monthly payment to reach a future goal
PMT = (FV − PV·(1+i)ᴺ) × i / ((1+i)ᴺ − 1)
- PMT
- Required monthly contribution
- FV
- Savings goal (future value)
- PV
- Current savings (present value)
- i
- Monthly interest rate = Annual rate ÷ 12
- N
- Total months = Years × 12
Estimates only and not financial advice. Interest rates on savings can change over time.
Frequently Asked Questions
What if the monthly amount is zero?
That means your current savings will already grow to meet or exceed your goal at the given rate — no further contributions are needed.
Does it assume monthly compounding?
Yes, interest is compounded monthly and contributions are added at the end of each month.