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Savings goal calculator

Find how much you need to save each month or period to reach a savings target within your chosen timeframe, including expected returns.

Required fields are marked with an asterisk (*).

The amount you aim to reach by the end of the period.
The amount you have already saved and will build on.
The expected yearly return on your savings; use a conservative rate if you are unsure.
How many years you have to reach the target.
Savings frequency
Choose how you save: monthly, quarterly or annually.
The currency used to display the results.

Whether your goal is buying a home, funding education or building an emergency fund, knowing how much to save each period is the first practical step. Enter your target, current savings, expected return and timeframe to see the required periodic contribution and how much of the goal your returns are expected to cover.

Formula

The required periodic saving is set so that the total of deposits plus their compounded returns reaches the target at the end of the period: contribution = (target − current savings × growth) × rate ÷ (growth − 1).

When is this useful?

Use this calculator when setting long-term savings goals such as children’s education, buying a home or building an emergency fund, so you can settle on a realistic periodic amount and reach your target within the desired timeframe.

Worked example

Example using the calculator’s values: a target of 120,000 Jordanian dinars with 10,000 dinars already saved, a 5% annual return and 10 years.
You need to save about 667 dinars per month.
Expected returns contribute about 30,000 dinars towards the target.

Assumptions

  • The annual return is fixed for the whole period.
  • Deposits are made at the end of each period.
  • Taxes, fees and inflation are not taken into account.
  • Reaching the target requires saving regularly and consistently.
  • Results are estimates and do not guarantee any particular return.

Common mistakes

  • Ignoring current savings when working out the gap that must be filled.
  • Using an unrealistic return, which over-reduces the required saving.
  • Overlooking inflation, which erodes the purchasing power of the target over time.
  • Assuming you will stay committed without reviewing the plan regularly.
  • Believing the target is guaranteed at a fixed return.

Frequently asked questions

What if I can reach the target early?

The calculator shows the period in months and you can adjust the inputs; you could also lower the periodic saving or raise the target depending on your situation.

Which annual return should I use?

Use a conservative rate if you are unsure of the expected return, because exaggerating the return produces an unrealistic savings plan.

Does the calculation account for inflation?

No, it works with today’s nominal values, so keep in mind that inflation reduces the purchasing power of the target in the future.

What if my current savings already exceed the target?

The calculator will show a periodic saving of zero, because the goal is already met with your current savings.

Methodology and review

The calculator uses the future value of periodic contributions with compound interest and shows progress towards the goal year by year. Results are estimates for planning. Tax and regulatory rules and investment options vary by country, so verify with the relevant authorities before relying on the figures.

Results are estimates for informational purposes only and do not constitute investment advice or a guarantee of reaching the goal at any particular return.

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