Calculate how much you need to save each month to reach a specific savings goal by a target date, accounting for interest earned along the way.
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This calculator uses the future value of an annuity formula, working backward from your target amount to determine the fixed monthly contribution needed, accounting for both your existing savings growing with interest and your new monthly contributions also earning interest over time.
Even a modest interest rate reduces how much you need to personally contribute each month, since your money grows on its own over time. Setting the interest rate to 0% shows the contribution needed with no growth, useful as a conservative baseline.
For example, saving toward a $10,000 goal starting from $1,000 already saved, over 24 months at 4% annual interest, requires a monthly contribution of $357.49. Over those two years you'd personally contribute $8,579.78, with the remaining $420.22 coming from interest earned along the way, interest that a 0%-rate baseline would leave you to make up entirely out of pocket.
Entering the interest rate as a decimal (0.04) instead of a whole percentage (4), which understates the required contribution.
Leaving current savings at zero when you already have some money set aside, this calculator factors existing savings' own growth into the required monthly amount, omitting it overstates what you need to contribute.
Treating the interest rate as guaranteed and fixed, real savings and investment rates can change over the saving period, so revisit this calculation periodically rather than setting it once.
Use the expected annual interest rate for wherever you're keeping the savings, such as a high-yield savings account or investment account. Enter 0 if you want a conservative estimate with no growth.
If your current savings already meet or exceed your goal, this calculator isn't needed, you've already reached your target.
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