Plan a savings target
Monthly Savings Goal Calculator
How much should you save each month? Work backwards from your target, with interest and your existing savings included.
Find your monthly saving
Use an assumed nominal annual rate, compounded monthly. The rate stays fixed throughout this illustration. All amounts use the selected currency; this does not convert money.
- Starting balance
- New monthly deposits
- Projected interest / loss
- Projected final balance
The payment is rounded up to the next penny/cent. The projection uses that rounded payment throughout, so the final balance may slightly exceed the target. Interest is not rounded monthly in this model.
See the year-by-year projection
| Year | Months | Deposits | Interest / loss | End balance |
|---|
How much should I save each month to reach £20,000?
Suppose you already have £2,000, want £20,000 in five years, and assume a 5% nominal annual rate compounded monthly. There are 60 payments.
- The monthly rate is 0.05 ÷ 12.
- The starting £2,000 grows to about £2,566.72 on its own.
- The remaining target must come from your monthly deposits and the interest they earn.
- With end-of-month deposits, the required payment rounds up to £256.35 a month. With beginning-of-month deposits, it is £255.29, because each payment earns one extra month of interest.
These are hypothetical assumptions, not a promised savings rate or return. A longer term, larger starting balance or higher assumed return can reduce the calculated payment; taking investment risk is not a substitute for a realistic savings budget.
The monthly savings goal formula
Let T be the target, P the starting balance, i the nominal annual rate as a decimal divided by 12, and N the number of monthly payments.
End-of-month payment = (T − P × (1 + i)^N) / (((1 + i)^N − 1) / i)
Beginning-of-month payment = End-of-month payment / (1 + i)At 0% interest, divide the remaining target by the number of months: (T − P) / N. If the projected starting balance already meets the target, no new deposits are required under these assumptions. With no time remaining and a shortfall, regular payments cannot close the gap: you need a larger starting amount or more time.
What this estimate includes
- Equal monthly deposits, beginning or end of month, for up to 100 years.
- A constant nominal annual rate with monthly compounding. A negative rate represents a loss in this simplified model.
- No withdrawals, tax, fees, inflation, contribution increases or variable returns.
To compare an AER/APY, model changing deposits or apply tax, fees and inflation, use the full compound interest calculator. This tool solves the monthly payment, rather than recommending a product or a personal savings plan.
Which calculator should I use?
- Know your target but not the monthly saving? Use this savings-goal calculator.
- Know your monthly saving but not the final balance? Use the regular-deposit calculator.
- Want a single deposit with no monthly payments? Use the reverse compound interest calculator.