Savings Goal Calculator: Formula and Examples
Estimate the monthly deposit needed to reach a savings target.
How the calculation works
Monthly deposits are regular and the return stays constant. If current savings already grow past the target, no new deposit is required under that assumption.
Savings Goal formula
Required monthly deposit = (target − projected growth of current savings) ÷ monthly deposit accumulation factor, with a minimum of zero.
Worked example
At 0%, a $25,000 target with $5,000 saved over 40 months requires $500 per month.
Inputs, assumptions, and interpretation
Amounts and rates apply only to the defined scenario. For projections, returns remain constant and timing follows the selected input. Taxes, market variability, and unentered costs are excluded.
Displayed values are rounded, while calculations use unrounded numbers. The charts show modeled values rather than historical performance. For background, see Investor.gov introduction to investment returns.
Frequently asked questions
Are the default rates guaranteed?
No. Default inputs illustrate how the calculation works. Enter rates and contribution amounts relevant to your scenario, and review the applicable account or scheme terms.
Why might an actual statement differ?
Actual payment dates, compounding conventions, changing returns, fees, tax treatment, and account rules can differ from a simplified projection.
How should I interpret a negative result?
Some comparisons or value changes can be negative, including investment losses or a gap between alternative scenarios. Read the result labels to distinguish a balance from a change in value.