How much should you save each month to reach a goal?
Enter the amount you want to have, what you have already saved, how long you have, and an assumed rate. The calculator estimates an equal deposit at the end of each month that would reach the target if the rate and schedule stayed constant. The rate is an assumption, not a forecast or a current account offer.
For example, a $20,000 target, $5,000 already saved, five years, and a 4% nominal annual rate compounded monthly produce an estimated monthly deposit of about $206. The estimate first grows the current balance, then solves for equal month-end deposits to cover the remaining amount. The illustration is arithmetic based on entered assumptions and is not a claim about available rates.
How does compounding affect the estimate?
Compound interest means interest can be earned on both the original balance and previously credited interest. The Consumer Financial Protection Bureau explains that compounding frequency affects growth. This tool starts from a user-entered nominal annual rate, converts it to an equivalent monthly rate using the selected annual compounding convention, and applies that monthly rate to the balance. That conversion gives a consistent monthly planning schedule, but it does not recreate every bank's daily balance or crediting method.
Investor.gov's Savings Goal Calculator also asks users to enter a goal, initial investment, time to grow, estimated annual interest rate, and compounding frequency. This calculator uses the same general planning inputs and adds an explicit month-end deposit assumption so the required monthly amount can be reviewed. Its output is sensitive to the estimated rate and time horizon; changing either can materially change the result.
What does this calculator leave out?
The model assumes the same monthly contribution and an unchanging nominal rate throughout the full period. It does not account for inflation, taxes, fees, account minimums, contribution timing changes, withdrawals, missed deposits, or variable rates. Investments can lose value, and actual returns do not arrive in a smooth monthly pattern. Savings accounts and CDs have their own terms, payout schedules, and renewal conditions. A nominal future balance also does not show future purchasing power.
Use a rate basis consistent with the account information you have. If an institution gives an APY rather than a nominal rate, convert consistently or run a scenario using an equivalent nominal rate; do not apply the APY and then compound it again as though it were a nominal rate. For an account-specific plan, check the institution's disclosures and recalculate when rates or deposits change.
Sources checked 2026-11-03: SEC Investor.gov, Savings Goal Calculator, listing goal, initial balance, time, estimated rate, and compounding frequency inputs; and CFPB, How does compound interest work?, last reviewed 2023-10-19.
This planning tool is educational arithmetic, not financial, investment, tax, or legal advice.
Frequently asked questions
Are deposits made at the start or end of each month?
The model assumes each equal deposit is made at month-end. Beginning-of-month deposits would have one extra month of modeled growth.
Is the rate a guaranteed return?
No. You supply the assumed nominal annual rate. The calculator holds it constant for illustration and does not fetch rates or forecast returns.
What if my current savings already exceed the target?
The estimated required monthly deposit is zero, and the result notes that the entered balance already meets or exceeds the target before future deposits.
Does the result include inflation, taxes, or fees?
No. Those factors can reduce purchasing power or the amount retained and should be considered separately for your situation.