Last updated 3 September 2026
Working backwards from the goal
Most saving advice starts from what's left over at the end of the month, which is why most saving plans quietly fail — whatever is left over is never a fixed amount. Starting from the target instead turns a vague intention into a single number you can either commit to or reject honestly. If the monthly figure looks impossible, that is useful information rather than a failure: it means the deadline needs to move, the target needs to shrink, or something in the budget has to change. Interest helps, but over short horizons it does far less work than the monthly amount itself.
Matching the account to the timeline
The right place for savings depends almost entirely on when you need them. Money needed within a couple of years should not be exposed to market volatility, because there may not be time to recover from a fall before the date arrives — a cash or high-yield savings account is the appropriate choice even though the return is lower. Money with a horizon of a decade or more can tolerate volatility, and over that period the erosion caused by inflation in a cash account usually outweighs the risk of market fluctuation.
The interval between roughly three and seven years is the genuinely awkward one, with no clean answer. What helps more than choosing perfectly is automating the contribution on payday rather than saving whatever remains at the end of the month. Consistency of contribution does more for a medium-term goal than optimising the rate of return does.
Assumptions and limitations
What the maths does. It works out the regular contribution needed to reach your target by your deadline, treating any return rate you enter as fixed for the whole period.
The target is in today’s money. If the goal is several years away, the thing you are saving for will probably cost more by then. For a long-dated goal, consider raising the target to account for that.
A fixed return is a simplification. If the money is held in investments rather than cash, the return varies and can be negative, so the required contribution is not something you can set once and forget. Money needed within a few years is usually held in cash for exactly this reason.
Tax and fees are not deducted, and neither is any interest you may already be earning on money set aside elsewhere.
Assumptions that apply to every finance calculator here
Currency is a display choice only. Changing the currency symbol relabels the output; it does not convert anything and no exchange rate is used anywhere in this tool.
Tax and lending rules vary by country. Nothing here is adjusted for the rules where you live — income tax, capital gains tax, stamp duty, lending caps, affordability tests and consumer-credit regulation all differ, and several of them can change the real answer materially.
Rates and returns are not guaranteed. Any rate you enter is treated as fixed for the whole period. Real interest rates move, real investment returns vary year to year and can be negative, and past performance does not predict future results.
This is an estimate, not advice. The result is arithmetic on the numbers you typed. It is not an offer, a quote, an approval, an investment recommendation or financial advice. Before committing to anything, get figures from the actual lender, provider or a qualified adviser in your country.
Common questions
How is interest handled?
Interest compounds monthly at the annual rate divided by twelve, and deposits are assumed to arrive at the end of each month. That's the conservative assumption — saving earlier in the month earns a little more than shown.
What if the monthly amount is more than I can manage?
Then the plan needs changing rather than the willpower. Extending the deadline lowers the monthly figure fastest; lowering the target works too. Seeing the real number is the point of working backwards from the goal.
Does the already-saved amount earn interest too?
Yes. Existing savings grow at the same rate for the full period, which is why a head start reduces the monthly figure by more than the head start itself.
Is my information stored anywhere?
No. The calculation runs in your browser and nothing is uploaded or saved.