Monthly Savings Calculator

Calculate how much you need to save each month to reach a savings goal.

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Enter your values and click Calculate

This calculator answers the practical question of how much you need to save each month to hit a specific financial target by a specific date. It is useful for building an emergency fund, saving for a vacation or wedding, accumulating a down payment on a home, funding a child's education, or reaching any savings milestone on a defined timeline. Unlike a simple division of the goal by the number of months, this calculator properly accounts for compound interest on both your existing balance and your future monthly contributions, so the required monthly amount is often lower than a straight division would suggest. The interest calculation uses the standard future-value-of-annuity formula applied in reverse. It also handles the edge case where your existing savings will grow enough on their own to cover the goal without further contributions, returning a required payment of zero in that scenario. A zero-percent rate option is available for goals in non-interest-bearing accounts.

How It Works

The calculator uses the future value of an annuity formula in reverse to find the required monthly deposit. First, any existing savings are projected forward: FV_current = currentSaved × (1 + r)^n, where r is the monthly interest rate (annual rate ÷ 12) and n is the number of months. The remaining amount that new contributions must cover is goal − FV_current. The required monthly payment is then: PMT = remaining × r ÷ ((1 + r)^n − 1). When the annual rate is 0%, the formula simplifies to PMT = remaining ÷ n. If the projected growth of existing savings already meets the goal, the calculator returns zero — no new contributions are needed.

Examples

Save $20,000 in 24 months with $2,000 already saved at 4% interest
Emergency fund or down payment planning.
Result: ~$735/month needed.
Save $5,000 in 12 months with no existing savings and 0% rate
Simple no-interest savings plan.
Result: ~$417/month needed.
Save $50,000 in 60 months with $10,000 saved at 5% interest
Five-year savings plan for a large purchase.
Result: ~$579/month needed.

Frequently Asked Questions

What if my current savings will grow to cover the goal on their own?
The calculator detects this and returns $0 required. Your existing balance, compounded over the selected period, will reach the target without any additional monthly contributions.
Does this calculator account for taxes on interest?
No — the calculation assumes the full interest rate applies without tax deductions. For accounts in taxable brokerage accounts, your effective return will be lower after taxes, so you may need to save slightly more.
What is a realistic interest rate to enter?
High-yield savings accounts currently offer around 4–5% annually. Money market accounts and CDs range from 4–5.5%. A general brokerage portfolio historically averages around 7% before inflation. Use the rate that matches the account you plan to use.