ClearCalcHow it's calculated
The calculator first works out how much your current savings will grow to by the deadline, then finds the monthly deposit that covers the rest, with each deposit earning interest from the month it's made:
PMT = (Goal − Saved × (1 + i)n) × i ÷ ((1 + i)n − 1)
Here i is the monthly interest rate and n the number of months. At 0% interest it's simply the remaining amount divided by the number of months.
Tips for reaching your goal faster
- Automate it. Set up a standing order or mobile money transfer to savings on payday so the money moves before you can spend it.
- Use a separate account. Keeping goal money apart from everyday spending makes it much easier to leave alone.
- Earn interest on it. Even a modest rate on a savings account or fixed deposit reduces how much you need to put in yourself.
- Add windfalls. Bonuses, gifts and side-income go straight to the goal and shorten the timeline.
Frequently asked questions
How big should an emergency fund be?
A common guideline is three to six months of essential living costs. If your income is irregular, such as freelance or commission work, aim for the higher end.
What if the result says I've already reached my goal?
That means your current savings will grow past the target by the deadline at the interest rate you entered, so no further deposits are needed.
Should I include inflation?
If your goal is a future purchase whose price will rise, such as tuition or a car, increase the goal amount by expected inflation to stay on target.