Savings goal calculator

What the result means

A savings goal is a target date plus a deposit plan. Interest helps, but most short-horizon goals are mostly deposits.

How it is calculated

Solve PMT from FV = P(1+i)^n + PMT × ((1+i)^n − 1)/i, with monthly i = r/12

• FV: Goal.
• P: Amount already saved.
• PMT: Monthly deposit.

Contribution mode rearranges the annuity formula. Time mode solves for n and reports years.

Worked example

$20,000 in two years from $2,000, at 0% for a check

If the account paid nothing, 24 deposits must cover $18,000.

Gap

$20,000 − $2,000 = $18,000

Monthly

$18,000 ÷ 24 = $750

A positive rate reduces the required deposit. The calculator solves that adjustment.

Returns are not guaranteed

A 4% figure might match a high-interest savings account in some years and be optimistic in others. For a house deposit, pair this with the deposit and LVR calculators rather than assuming investment-like returns.

On a two-year $20,000 goal with $2,000 already saved, the 0% check is $750 a month. A 4% rate trims that deposit, but most of the $18,000 gap is still money you transfer, not interest the bank adds. Do not plan a short-horizon goal as if it were a decade of compounding.

Questions