Complete guide: Savings Goals
Updated:
Reaching a goal requires knowing the target, existing savings and available months. With no return, saving 12,000 in 24 months starting from 2,000 needs 416.67 per month. A longer term reduces the savings payment but may increase exposure to price changes.
The entered yield is effective annual. It converts to an equivalent monthly rate using (1 + yield) raised to 1/12, minus one. Interest is reinvested monthly. Depositing at the beginning of the month leaves each deposit invested one month longer than depositing at the end.
The projection assumes a constant, non-guaranteed return with no withdrawals, taxes or fees. Enter an estimated net yield to account for those costs and update your target for inflation. If initial savings and their growth already cover the target, no deposit is required; the projected balance may exceed the goal.
How it works
- 1Monthly rate r = (1 + annual yield/100)^(1/12) − 1.
- 2End-month deposit = [target − initial × (1+r)ⁿ] ÷ [((1+r)ⁿ − 1)/r].
- 3For beginning-month deposits divide by (1+r); at zero yield, divide the gap by months.
Frequently asked questions
How much should I save monthly with no interest?
Subtract initial savings from the goal and divide by months. If it is already covered, the deposit is zero.
Is the yield guaranteed?
No. It is a simulation assumption; actual returns, fees and taxes may change the result.
Does depositing at the start of the month help?
At a positive yield, each deposit earns an extra month of growth and the required contribution is slightly lower.