How to use the savings goal calculator
- Enter your goal amount and what you've already saved.
- Set the years until you need the money.
- Add a realistic interest rate for where the money will sit.
- Automate the monthly figure on payday.
The formula
PMT = (Goal − Current × (1 + r)^n) × r / ((1 + r)^n − 1)
r is the monthly rate and n the number of months. With a 0% rate it's simply the remaining amount divided by the months.
Worked example
To reach 30,000 in 3 years with 2,000 saved at 4%, you need about 735 a month — roughly 170 a week.
Tips from the numbers
- An emergency fund of 3–6 months of essential expenses is a common first goal.
- Keep short-term goals in low-risk accounts; markets can fall right when you need the money.
- Automation removes willpower from the equation.
- Break big goals into milestones and celebrate each one.
Watch: learn the concept
Frequently asked questions
Where should short-term savings be kept?
High-interest savings accounts or similar low-risk deposits are common choices for money needed within a few years.
What if I can't afford the monthly amount?
Extend the timeline, lower the goal, or combine a smaller monthly amount with windfalls like tax refunds.
Does the calculator include taxes on interest?
No. Interest may be taxable depending on your account type and country.
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