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Savings goal calculator

Set an amount to reach and get the monthly figure that gets you there, or set what you can save and get the time it takes. An expected return is applied only if you give one.

What you are saving for

In today's money

Optional. What is put by towards it so far.

How you want to plan it

Work out
Time unit

Expected return

Optional. Leave blank to plan on contributions alone.

Left blank, the answer is plain arithmetic: what you put in is what you get. Fill it in and the figure becomes a projection, which assumes the rate holds for the whole plan and ignores tax on the interest.

Your plan

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Enter what you are saving for, and either how long you have or what you can put aside.

Two ways to ask the same question

A savings goal has four parts, what you need, what you have, how long you have, and how much goes in each month, and any three of them fix the fourth. This tool works out whichever one you leave out.

Start with the deadline if the date is fixed: a wedding, a deposit on a place you have already seen, a course that starts in September. Start with the monthly amount if your budget is the fixed thing, which for most people it is. The second framing produces plans that survive contact with a real month.

Why no return is assumed by default

Almost every savings goal calculator applies a growth rate whether or not you asked for one, and it always makes the monthly figure smaller. That is pleasant and it is not neutral: an assumption you did not make has quietly become part of your plan, and if the return does not arrive, the shortfall turns up at the end, when there is no time left to fix it.

Left blank, the arithmetic is something you can check in your head: what you need, minus what you have, divided by the months. Enter a rate and the tool applies it, says so, and shows the growth as a separate line so you can see exactly how much of the plan depends on it.

When a return is worth including

Over one or two years it changes very little and a missed return costs you the goal. Over five or ten years on a substantial balance, ignoring growth genuinely overstates what you need to put in. If you do enter a rate, use what your account actually pays rather than a hopeful figure, use the after-tax rate where interest is taxed, and run it once without a rate to see the gap you are relying on.

The things it does not model

  • Inflation. The target is in today’s money. Something five years out will probably cost more by then, at 3% a year, about 16% more.
  • Tax. Where interest is taxable, the return you keep is lower than the rate advertised.
  • Missed months. Every contribution is assumed to be made. One skipped month is not fatal; a habit of them is.

The time is always rounded up to a whole month, because the money is not there until that month’s contribution is. That makes the final month overshoot slightly, and the surplus is shown rather than absorbed.

Questions

How much should I save each month to reach my goal?
Take the target, subtract what you already have, and divide by the number of months you have. For 12,000 in two years with nothing saved: 12,000 divided by 24 = 500 a month. That is the whole calculation when no growth is assumed, which is the default here. No return is applied unless you enter one.
Why is the expected return left blank?
Because a return you have not chosen is an assumption made on your behalf, and it always makes the monthly figure look smaller than it should. Left blank, the answer is plain arithmetic you can check: money in, divided by months. Fill it in and the figure becomes a projection, which the results then say.
Should I assume a return on my savings?
It depends on the term. For a goal inside a year or two, the difference is small and a return that fails to arrive leaves you short, plan without one. Over five years or more, ignoring growth on a large balance overstates what you need. If you do use a rate, use the one your account actually pays rather than a hopeful figure, and check the result again without it to see the gap you are relying on.
Is the rate I enter monthly or yearly?
Yearly, and it is what the money earns over a whole year rather than a nominal rate to be divided by twelve. Enter 6% and 1,000 left alone becomes 1,060 after a year. Internally the monthly figure is the twelfth root of that, so twelve months compound back to exactly the rate you entered.
Does this account for inflation?
No. The target is in today's money. If you are saving for something five years away, the thing itself will probably cost more by then, so raise the target rather than expecting the plan to absorb it. As a rough guide, at 3% a year a cost rises about 16% over five years.
What if I cannot manage the monthly figure?
Switch to the other mode: enter what you can genuinely save each month and the tool tells you how long it takes. A realistic plan that runs six months longer is worth more than an ambitious one abandoned in March. The weekly equivalent is shown too, which for many people is the easier number to judge.
Why is the time rounded up to a whole month?
Because arriving four fifths of the way through a month is not arriving. The money is only there once that month's contribution is made. Rounding up means the last month often overshoots slightly, and that surplus is shown separately rather than hidden.
Does it matter that this ignores tax on the interest?
It can. Where interest is taxable, the return you actually keep is lower than the rate advertised, so a plan built on the gross rate falls a little short. If you are entering a return at all, entering the after-tax figure gives a more honest answer.

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