Work backwards from the goal
Most savings calculators ask how much you will have. This one starts from what you need, whether that is a deposit for a home, an emergency fund or a holiday, and tells you the monthly amount that gets you there on time.
Interest does some of the work. The longer the plan runs, the larger the share of the goal that comes from interest instead of your deposits, which the breakdown bar shows.
Making a goal realistic
Check the monthly figure against your budget before committing to it. If it is too high, there are three honest options: more time, a smaller goal, or a bigger starting amount. Try each and watch how the deposit changes.
Keep savings for short goals in accounts that do not lose value. Money you need within a couple of years is usually better in a savings account than in investments that can drop.
Staying on track
Automating the transfer on payday removes the temptation to skip a month. Revisit the plan once or twice a year: if the rate or your income changes, enter the new balance as “Already saved” and recalculate for the remaining time.
Questions people ask
How is the monthly savings amount calculated?
The calculator finds the level monthly deposit that, together with interest on what you already have, reaches your goal. With a monthly rate r over n months the deposit is (Goal − Saved·(1 + r)^n) · r ÷ ((1 + r)^n − 1). With no interest it is simply (Goal − Saved) ÷ n.
Which interest rate should I enter?
Use the rate your account actually pays, ideally the annual percentage yield for a savings account, or 0 if you are saving cash at home. Rates on savings accounts change, so rerun the calculation if yours does.
What if I can only save less than the result?
Lengthen the time, lower the goal, or start with a larger lump sum. Changing the time is usually the most effective lever, because it lowers the monthly amount and gives interest longer to work.
Are deposits made at the start or end of the month?
At the end. Paying at the start of each month would earn a little more interest and need a slightly smaller deposit, so this estimate is on the cautious side.
Does it account for inflation?
No. If your goal is far away, prices may have risen by then. Use the inflation calculator to see what your target will cost in future money and raise the goal accordingly.