Savings Goal Calculator

What This Calculator Does

This works the savings problem backward. Instead of “if I save this much, what will I end up with?”, it answers the more useful question: “I want to reach this target - how much do I need to put away each month?”

The surprising part is how much of the goal comes from growth rather than your own deposits. The bar under the calculator splits the target into what you put in (blue) and what growth adds (green), and the longer your timeline, the more the green slice does the heavy lifting. That is the power of starting early.

The Formula

$$\text{monthly deposit} = \frac{\text{target} - \text{current} \times (1 + r)^n}{\dfrac{(1 + r)^n - 1}{r}}$$

where $r = \dfrac{\text{annual return}}{100 \times 12}$ is the monthly rate and $n = \text{years} \times 12$ is the number of months.

This is the future-value-of-an-annuity formula solved for the monthly payment. Deposits are treated as end-of-month. Figures are estimates and assume a steady return; real markets vary, so treat the result as a planning guide, not a guarantee.

How to Use It

1. Enter the target amount and the years you have.
2. Enter the expected annual return (a long-run stock-index estimate is often taken as about 6-8%).
3. Optionally add your current savings.
4. Read the required monthly deposit and the contributed-versus-growth split.

Worked Examples

Target	Years	Return	Save / month
1,000,000	30	7%	819.69
1,000,000	20	7%	1,919.66
500,000	25	8%	525.75
100,000	10	6%	610.21

In the first row you deposit about 295,089 of your own money over 30 years; the other ~704,911 is growth. Time and compounding do most of the work.

FAQ

How much do I need to save each month to reach a million?

It depends on time and return. At a 7% annual return, about 820 a month for 30 years, or about 1,920 a month for 20 years. Starting earlier sharply lowers the monthly amount.

What return should I assume?

That is your choice. Many people use a long-run, diversified stock-index estimate of roughly 6-8%, but returns are not guaranteed - lower it to be conservative.

Does it account for inflation or tax?

No. The target is in today’s numbers and the return is before inflation and tax. For a goal in “future money,” set a higher target or a lower return to stay conservative.