How to use this calculator
- Enter your goal amount — a house down payment, education fund, or emergency fund.
- Set the deadline in years and your current savings.
- Enter an expected return: use the deposit rate for savings, or a conservative 3–6% for index funds.
The formula
PMT = [Goal − Current×(1+i)^n] × i ÷ [(1+i)^n − 1]
PMT = required monthly saving, i = monthly rate, n = months. If your existing savings can compound toward the goal, the required monthly amount drops significantly.
Frequently asked questions
Should money I need within 5 years be invested?
Money needed within 3–5 years should generally avoid volatility: savings accounts, money-market funds, and short bonds. Use conservative return assumptions (1–3%) for such goals.
How big should an emergency fund be?
A common rule is 3–6 months of essential expenses. Choose the higher end if your income is unstable or you support dependents.
Why does the "invested share" matter?
It shows how much of the goal comes from your own deposits versus returns. Over short horizons, returns contribute little — the goal is reached through saving discipline.
The required monthly amount is too high — now what?
Extend the deadline, lower the target, or accept more volatility for a higher expected return. The calculator updates instantly so you can weigh the trade-offs.
Disclaimer Results are for reference only and do not constitute financial, tax, or legal advice. Actual rates, returns, and fees depend on the terms of your financial institution.