How It Works
This calculator first projects what your current savings will grow to on its own over your timeline. It then solves for the fixed monthly contribution needed to close the remaining gap to your goal, assuming monthly compounding.
If your current savings are already projected to reach (or exceed) your goal through growth alone, the required monthly contribution will show as $0.
Formula
- Goal — Target savings amount
- P — Current savings
- r — Monthly interest rate (annual rate ÷ 12)
- n — Number of months until the goal date
Example
Example inputs: Goal $15,000, current savings $2,000, 4% estimated annual return, 3-year timeline.
Result: Starting savings grows to: $2,254.54. Required monthly contribution: $333.81. Total you'll contribute: $12,017.22.
Frequently Asked Questions
What if I can't contribute the required amount?
Try a longer timeline or a lower goal amount in the calculator — extending the time period reduces the required monthly contribution, since your money has more time to grow and you're spreading contributions further apart.
Does this account for taxes on interest?
No — this is a pre-tax projection of growth. Interest or investment gains may be taxable depending on the type of account, which would reduce your real accumulated total.
Why is the required contribution not just the goal divided by months?
Because any interest your account earns along the way contributes toward the goal too, so the required monthly amount is typically a bit lower than a simple division would suggest — the gap shrinks as your rate and timeline increase.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.