Free Savings Goal Calculator – Monthly Deposit Needed

How the Savings Goal Calculator Works

Most saving advice tells you to save more. This calculator tells you exactly how much. You enter the amount you want to have, the time you have to get there, and the annual return you expect on the money, and it returns the fixed monthly deposit that gets you to the target — along with how much of the goal comes from your own pocket and how much from interest. People saving a house down payment, building an emergency fund, planning a wedding, or putting money aside for a child's education all need that single monthly figure, because a number you can automate as a standing instruction is far more likely to actually happen than a vague intention. The engine is the future value of an annuity formula, rearranged to solve for the payment: PMT = FV × r ÷ ((1 + r)^n − 1). FV is the future value you want, r is the monthly rate — annual rate divided by 12 and then by 100 — and n is the number of monthly deposits. It assumes deposits are equal and made at the end of each month, with returns compounding monthly. When you set the rate to zero the formula would break, so the tool simply divides the goal by the number of months instead, which is the right answer for money sitting in a current account earning nothing. Here is a real goal. You want ₹5,00,000 in three years for a car down payment, and you expect 7 per cent a year in a recurring deposit. The monthly rate is 0.583 per cent and n is 36. The formula gives ₹12,521.88 a month. Over those 36 months you contribute ₹4,50,788 of your own money and interest supplies the remaining ₹49,212. With no return at all you would need ₹13,888.89 a month, so the 7 per cent is worth ₹1,367 a month to you. Stretch the same goal to five years and the deposit falls to ₹6,983.93, with interest doing far more of the work at ₹80,964. The cases are specific. Someone with ₹3,00,000 to raise in 24 months at 6.5 per cent finds they need ₹11,738.88 a month, and can then judge honestly whether that fits the household budget or the timeline has to move. A parent saving ₹20,00,000 over ten years at an expected 12 per cent needs only ₹8,694.19 a month, because a decade of compounding contributes almost half the total. Someone building a six-month emergency fund uses a zero or low rate deliberately, since that money belongs in a liquid account rather than an equity fund. And anyone comparing two timelines can see precisely what buying more time is worth in monthly terms. One caveat matters more than the rest: the expected return is an assumption, not a promise. Using 12 per cent for an equity fund and then seeing three flat years leaves you short, and the shortfall is worst near the end when there is no time to recover. Use the quoted rate for fixed deposits and recurring deposits, and a deliberately conservative figure for market-linked investments. The calculator also ignores inflation, so a ₹5,00,000 goal set today buys less in five years — set the target above today's cost of whatever you are saving for. Tax on interest or capital gains is not modelled either. Review the plan once a year and raise the deposit when your income does, because a plan set three years ago against a salary you have since outgrown is leaving progress on the table. Everything runs in your browser, so your goals and figures are never uploaded or stored.

Savings Goal Calculator Formula & Method

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