CALCSLIP

Savings goal calculator

How much to put aside each month to reach a goal by a date.

$

A retirement fund, a deposit, a degree

$
years
% a year
Inflation
% a year

Raises the goal so it keeps today's buying power

Result

Save each month
$487.04
Current savings will grow to
$405,825
Total you pay in
$225,335
Growth from returns
$774,665
Monthly payments
360

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How this was calculated

  1. What you have now becomes

    Saved × (1 + i)^n, i = return ÷ 12

    $50,000 × 1.00583333^360 = $405,825

  2. Monthly saving

    (F − PV × (1 + i)^n) × i ÷ ((1 + i)^n − 1)

    ($1,000,000 − $405,825) → $487.04 × 360

What this calculation assumes

  • The return is earned evenly and compounded monthly; payments are made at the end of each month. Real returns go up and down.
  • The expected return is your assumption: about 7% a year is a common long-run figure for a stock-heavy portfolio before inflation, and cash savings earn less.
  • Taxes and fees are not deducted unless you lower the return to allow for them.

Estimates for information only. They are not financial advice, a loan offer or a guarantee of any return, rate or approval. Lenders and providers calculate with their own terms; check yours before you decide.

In short

The monthly saving needed is (F − PV × (1 + i)^n) × i ÷ ((1 + i)^n − 1), with i the yearly return ÷ 12. To reach $1,000,000 in 30 years from $50,000 at a 7% return you need to save $487.04 a month.

Working back from the goal

Monthly saving = (F − PV × (1 + i)^n) × i ÷ ((1 + i)^n − 1)

F is the goal, PV what you have now, i the expected yearly return divided by 12 and n the number of months. The money you already have keeps growing on its own; the monthly payments only need to cover the rest.

Example: to reach $1,000,000 in 30 years with $50,000 saved and a 7% return, the $50,000 grows to $405,824.87 by itself and you need to save $487.04 a month. You pay in $225,334.53 in total; the other $774,665.47 is growth.

Inflation and the return you assume

A goal written in today's money needs to be raised by inflation. At 3% a year, $1,000,000 of today's buying power is $2,427,262 in 30 years, and the same plan then needs $1,656.96 a month. Add an inflation rate to see the goal in future money.

The return is the assumption that matters most. A stock-heavy portfolio has returned around 7% a year over long periods before inflation, with large swings; cash and bonds earn less. Try a cautious rate and use Pin & compare to see the range.

Questions people ask

How much should I save for retirement?

Work out the yearly income you want, multiply by about 25 (a 4% withdrawal rate) to get a goal, then enter it here with the years until you retire.

What if I start later?

Each year of waiting shortens the time compounding has to work, so the monthly amount rises faster than the years lost. Change the years and pin the first result to compare.