Savings Goal Calculator
Pick a target and a deadline — house deposit, wedding, emergency fund — and get the exact monthly amount that reaches it, with interest doing its share of the work.
Year-by-year plan
| Year | Contributed | Interest | Balance |
|---|---|---|---|
| 1 | £4,020.48 | £175.85 | £6,196.33 |
| 2 | £4,020.48 | £368.63 | £10,585.43 |
| 3 | £4,020.48 | £570.26 | £15,176.17 |
| 4 | £4,020.48 | £781.16 | £19,977.81 |
| 5 | £4,020.48 | £1,001.74 | £25,000.04 |
How it's calculated
The calculator solves the future-value equation for the monthly payment: target = current·(1+r)n + PMT·((1+r)n − 1)/r, where r is the monthly interest rate and n the number of months. Contributions are assumed at the end of each month, and the advised amount is rounded up to the next penny so the plan always lands on or above the goal.
Frequently asked questions
How much do I need to save each month to reach my goal?
The calculator solves the savings equation directly. Example: to reach £25,000 in 5 years starting with £2,000 at 4.5% interest, you need £335.04 a month — interest contributes £2,898 of the goal.
How does interest reduce what I need to save?
Both your starting balance and each contribution earn compound interest, so the higher the rate and the longer the timescale, the less of the goal has to come from your pocket. Over short periods (1–2 years) interest helps only modestly; over a decade it can cover a third or more of the target.
What formula does this calculator use?
It solves the ordinary-annuity future value equation for the payment: target = current×(1+r)^n + PMT×((1+r)^n − 1)/r, where r is the monthly rate and n the number of months. The advice is rounded up to the next penny so following it always reaches the goal.
Should goal savings be in cash or invested?
Money needed within a few years is usually best in cash savings, where the balance can't fall. Goals 5+ years away may justify investing for higher expected growth, accepting short-term ups and downs. The right rate to enter here is whatever your chosen home for the money realistically pays.