Savings Goal Calculator — How Much to Save Each Month
Enter your savings target, current balance, annual interest rate and time horizon — the calculator finds exactly how much you need to put away each month, quarter or year.
%
years
Contribution frequency
Amount to save each period to reach your goal
- 1
Total periods
5 × 12 = 60 - 2
Period interest rate
4% ÷ 100 ÷ 12 = 0.003333 - 3
Growth factor
(1 + 0.003333)ⁿ = 1.221 - 4
Required contribution
(10,000 − 0 × 1.221) × 0.003333 ÷ (1.221 − 1) = 150.83
How does this calculator work?
PMT = (FV − PV·(1+r)ⁿ)·r / ((1+r)ⁿ−1). Enter a savings goal, starting balance, annual rate and deadline to find the exact periodic contribution needed. A higher rate or longer horizon reduces the required payment because compound interest covers a larger share of the gap.
Formula
How this is calculated
The required-contribution formula is the inverse of the standard future-value-of-ordinary-annuity equation. Given a future goal (FV), a starting balance (PV), a periodic rate r = annual rate ÷ periods per year, and a number of periods n = years × periods, the calculator solves for PMT — the regular payment that makes the balance hit exactly FV at the end of the last period.
When the interest rate is zero the formula reduces to PMT = (FV − PV) / n: divide the shortfall evenly across all periods. With a positive rate, each contribution earns compound interest, so the required payment falls — the higher the rate or the longer the horizon, the more interest does the heavy lifting. The area curve below interpolates the balance month by month (approximated for quarterly or yearly frequencies).
Assumptions: contributions are made at end of each period (ordinary annuity), interest compounds at the same frequency as contributions, and the rate stays constant. Inflation and taxes on interest are not modelled; subtract them from the nominal rate for a real-return estimate.
Frequently asked questions
A negative PMT means your existing savings plus compound growth already overshoot the goal without any additional deposits. Try a larger target, a shorter time horizon, or reduce the starting balance.
Yes. More frequent contributions enter the account sooner and earn interest for longer. Monthly contributions are slightly more efficient than an equivalent yearly lump sum because each monthly payment starts compounding up to 11 months earlier.
Enter the nominal annual rate your bank quotes (e.g. 4.0%). The calculator divides it by the number of periods per year to get the period rate. If your bank quotes an effective annual rate, choose yearly compounding for the most accurate result.
TG we-Calculate Editorial Team. (2026). Savings Goal Calculator — How Much to Save Each Month [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/savings-goal-calculator
TG we-Calculate Editorial Team. "Savings Goal Calculator — How Much to Save Each Month." TG we-Calculate. 2026. https://we-calculate.com/calculator/savings-goal-calculator.
TG we-Calculate Editorial Team, "Savings Goal Calculator — How Much to Save Each Month," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/savings-goal-calculator
@misc{wecalculate_savings_goal_calculator, title = {Savings Goal Calculator — How Much to Save Each Month}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/savings-goal-calculator}}, year = {2026}, note = {TG we-Calculate} }
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