Savings Goal Calculator
A savings goal calculator turns a target and a deadline into a single number: how much you need to set aside each month. It accounts for the savings you already have and the growth they earn along the way, so you are not saving the whole goal out of pocket. The math works in any currency.
- Target amount
- $1,000,000.00
- Current savings grow to
- $0.00
- Total you contribute
- $693,301.75
Saving about 5778 a month at 7% growth reaches your 1000000 goal in 10 years. You contribute 693302 of your own; compound growth covers the rest.
How it works
Reaching a goal has two engines: the money you contribute and the growth that money earns. This calculator runs both. First it projects your current balance forward to the deadline, compounding monthly at your expected return — that head start often covers a surprising share of the goal. Whatever remains is the shortfall your monthly contributions must fill.
To find the contribution, it inverts the future-value-of-a-series formula, solving for the level monthly payment whose compounded total equals the shortfall by the deadline. Because each contribution keeps earning until the end, the payments you make early do more work than the ones you make near the finish line. The result is that your own contributions are typically well below the headline target — compound growth makes up the difference.
Three levers move the answer. A longer horizon slashes the monthly amount, because growth has more time to compound and there are more payments. A higher expected return lowers it too, though real-world returns are uncertain, so it is wise to use a conservative figure and revisit the plan as markets move. And larger current savings shrink the shortfall directly. The calculation assumes contributions are made at the end of each month and the return is steady; treat the output as a disciplined starting plan rather than a guarantee.
First grow today's savings: FV_current = PV · (1 + i)ⁿ. The shortfall is FV_needed = max(0, target − FV_current). The monthly contribution is PMT = FV_needed · i / ((1 + i)ⁿ − 1), where i = annual rate ÷ 12 and n = years × 12.
Worked example
Aim for 1,000,000 in 10 years at 7% expected return, starting from nothing. With 120 monthly contributions compounding at roughly 0.583% a month, you need to save about 5,778 each month. Over the decade you contribute around 693,302 of your own money — the remaining ~307,000 comes entirely from compound growth on those contributions.
Things to watch out for
The expected return is an assumption, not a promise; market savings can undershoot or overshoot, so review the plan yearly and adjust. If your current savings already grow past the target on their own, the required contribution falls to zero. Contributions here are end-of-month (an ordinary annuity); paying at the start of each month reaches the goal slightly faster. Inflation erodes the real value of a fixed target — for long horizons, consider raising the goal to preserve purchasing power.
Frequently asked questions
Does this account for money I already have saved?+
Yes. The calculator grows your current savings forward to the deadline at your expected return, then only asks you to fund the remaining shortfall — so you save less each month than the raw target implies.
What return rate should I assume?+
Use a conservative, realistic figure for your mix of assets. Cash and bonds sit lower; diversified equity portfolios have historically returned more but with volatility. A lower assumption builds in a safety margin.
What if I can't save the suggested amount?+
Extend the timeline, raise your expected return by taking on suitable risk, or lower the target. Lengthening the horizon usually has the biggest effect because it gives compounding more time to work.
Are contributions assumed monthly?+
Yes — the result is a level end-of-month contribution. If you save annually or at the start of each month, the timing shifts the required amount slightly.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22