Savings Goal Calculator

Enter your savings goal, current balance, timeline in years, and expected annual return. The calculator compounds your existing balance forward at the monthly equivalent of that rate, then solves the future-value-of-an-annuity formula for the fixed monthly deposit that closes the gap. The result is the exact contribution you need each month to hit your target.

Growth stacks on growth. At 7% annual return over 20 years, roughly half of a typical final balance comes from compounded gains rather than out-of-pocket deposits. The longer you stay invested, the larger that share becomes, which is why even small contributions made early outperform larger ones made late.

The default 4% is conservative and roughly matches a balanced bond-and-stock portfolio after inflation. High-yield savings accounts currently offer about 4-5% nominal. A broad US stock index fund has historically averaged 7-10% before inflation over long periods, but past performance does not guarantee future results. Try a few rates to see how sensitive your required monthly is to the assumption.

Most financial planners recommend 3-6 months of living expenses in a liquid, high-yield savings account before earmarking money for longer-term goals. Without that buffer you may be forced to liquidate investments at a loss when an unexpected expense hits. This is general guidance, not personalized financial advice.

You have three levers: extend your timeline, lower the goal amount, or accept more risk for a higher expected return. Extending the timeline usually has the biggest effect because your existing balance and early deposits compound over more periods. Try adding 2-3 years before adjusting the goal itself.