Monthly Savings Required

Find the monthly contribution needed to reach a future savings goal, accounting for monthly compounding interest.

Enter the future value you want to accumulate (today's dollars or inflation-adjusted target).
Use the expected annual yield (APY). Enter 0 for a no-interest savings plan.
The formula converts this to months automatically (years × 12).

Financial projections depend on consistent contributions, stable rates, and assumptions about inflation. Consult a licensed advisor for personalized planning.

Examples

  • $25,000 goal, 4.5% for 7 years ⇒ $258.57 per month
  • $10,000 goal, 3% for 4 years ⇒ $196.24 per month
  • $50,000 goal, 6% for 10 years ⇒ $322.35 per month
  • $15,000 goal, 0% for 5 years ⇒ $250.00 per month

FAQ

Are deposits assumed at the end or beginning of the month?

The formula assumes end-of-month contributions (ordinary annuity). For beginning-of-month deposits, multiply the payment by 1 ÷ (1 + r).

How should I account for fees, taxes, or inflation?

Reduce the annual rate by expected fees/taxes or increase the goal amount. For inflation, target a higher goal in today's dollars.

Can I change the contribution frequency?

Convert your frequency to an equivalent monthly rate and payment count (e.g., biweekly ≈ 26 contributions/year ≈ 26/12 months).

What if I already have savings?

Subtract the future value of your existing balance from the goal or use a present-value savings calculator to include starting funds.

Additional Information

  • Formula rearranged from the future value of an ordinary annuity: Payment = Goal × r ÷ ((1 + r)^n − 1).
  • Where r = annual rate ÷ 12 ÷ 100 and n = years × 12 monthly deposits.
  • When the rate is 0%, the payment reduces to Goal ÷ (years × 12).

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