How is the monthly contribution calculated?

It subtracts the future value of your initial deposit from the goal, then divides the remainder by the future-value factor of a monthly series: PMT = (FV − P(1+r)ⁿ) / (((1+r)ⁿ−1)/r).

What return should I assume?

For cash savings use 1–3%; for a balanced portfolio 4–6% is a common long-run assumption. Be conservative so you are not caught short.

What if the result is negative?

A negative contribution means your initial deposit alone will exceed the goal at that rate and time — you do not need to add more.

What return should I assume for a savings goal?

Match the return to the vehicle. A high-yield savings account might earn 1–3%, a balanced portfolio 4–6% over the long run. Be conservative: assuming too high a return leaves you short if markets disappoint, and you cannot make up lost time near the deadline.

What if I miss a few contributions?

Skipped contributions lower your final balance because both the contribution and its future compounding are lost. This calculator assumes a perfectly steady contribution; treat the result as a target and catch up after any gaps to stay on track.

Finance Calculators

Savings Goal Calculator

A savings goal turns a vague intention into a plan: pick the amount you want, the time you have, and a realistic return, and the maths tells you the monthly contribution required. This calculator solves for that contribution, accounting for an initial deposit and monthly compounding.

Enter your target balance, any starting amount, the years you have, and an expected annual return. If the required contribution is too high, extend the horizon or lower the goal.

It turns a target like a house deposit, a tuition bill or a trip into a concrete monthly commitment, and shows whether the plan is realistic or needs a longer horizon.

Savings goal

Initial deposit

Annual return%

Years to goalyrs

Currency

Enter your values to see the result.

How this is calculated

This calculator solves for the monthly contribution needed to reach a target balance by a set date. It first projects what your initial deposit will grow to on its own — P × (1 + r)^n, where r is the monthly rate and n the number of months — and subtracts that from the goal. The remainder must come from regular contributions, whose future-value factor is ((1 + r)^n − 1) ÷ r for an ordinary annuity. Dividing the remainder by that factor gives the required monthly contribution.

If the initial deposit alone is projected to exceed the goal, the required contribution comes out negative, meaning you do not need to add more. The total you will contribute is the initial deposit plus the monthly contribution times the number of months, and the interest earned is the goal minus that total.

The model assumes a constant average return, monthly compounding, contributions at month-end, and no taxes, fees or inflation. Real returns fluctuate, so be conservative with the rate you enter. It also assumes perfectly steady contributions; in reality, skipped months reduce both the contribution and its future compounding.

Worked example

Goal $50,000, initial deposit $5,000, 5% annual return, 10-year horizon.

1Monthly rate r = 0.05 ÷ 12 = 0.004167; months n = 10 × 12 = 120.
2Growth factor (1 + r)^n = (1.004167)^120 ≈ 1.647.
3Initial deposit grows to 5,000 × 1.647 = $8,235; remainder = 50,000 − 8,235 = $41,765.
4Annuity factor = (1.647 − 1) ÷ 0.004167 ≈ 155.3; monthly contribution = 41,765 ÷ 155.3 ≈ $269.
5Total contributed = 5,000 + 269 × 120 ≈ $37,280; interest earned ≈ $12,720.

Frequently asked questions

How is the monthly contribution calculated?: It subtracts the future value of your initial deposit from the goal, then divides the remainder by the future-value factor of a monthly series: PMT = (FV − P(1+r)ⁿ) / (((1+r)ⁿ−1)/r).
What return should I assume?: For cash savings use 1–3%; for a balanced portfolio 4–6% is a common long-run assumption. Be conservative so you are not caught short.
What if the result is negative?: A negative contribution means your initial deposit alone will exceed the goal at that rate and time — you do not need to add more.
What return should I assume for a savings goal?: Match the return to the vehicle. A high-yield savings account might earn 1–3%, a balanced portfolio 4–6% over the long run. Be conservative: assuming too high a return leaves you short if markets disappoint, and you cannot make up lost time near the deadline.
What if I miss a few contributions?: Skipped contributions lower your final balance because both the contribution and its future compounding are lost. This calculator assumes a perfectly steady contribution; treat the result as a target and catch up after any gaps to stay on track.

Related calculators

Method: future value of a lump sum plus an ordinary annuity, solved for the contribution. No external data source. Last updated: September 2026.

These results are indicative estimates for planning only and do not constitute financial advice. Actual loan terms, tax rules, investment returns and product conditions vary by country, provider and your personal circumstances. Always confirm figures with your bank, tax authority or a qualified financial adviser before making decisions.