Savings Goal Calculator — How Much to Save Per Month
Find out how much you need to save monthly to reach a financial goal, or how long it will take given a fixed monthly contribution. Accounts for compound interest on your existing savings.
Formula Explained
FV_lump = PV × (1 + r/12)ⁿ
FV_annuity = PMT × [((1+r/12)ⁿ − 1) / (r/12)]
Required PMT = (Goal − FV_lump) × (r/12) / ((1+r/12)ⁿ − 1)
Where r = annual return rate, n = number of months, PV = current savings, and PMT = monthly payment. The calculator compounds monthly for accuracy.
Savings Benchmarks by Age (Fidelity Rule of Thumb)
Based on a $75,000 salary example. These are retirement savings targets, not total net worth.
| Age | Savings Target | Multiple of Salary | Example ($75K salary) |
|---|---|---|---|
| 25 | Just started | 0–0.5x | $0–37,500 |
| 30 | 1× salary | 1x | $75,000 |
| 35 | 2× salary | 2x | $150,000 |
| 40 | 3× salary | 3x | $225,000 |
| 45 | 4× salary | 4x | $300,000 |
| 50 | 6× salary | 6x | $450,000 |
| 55 | 7× salary | 7x | $525,000 |
| 60 | 8× salary | 8x | $600,000 |
Source: Fidelity Investments retirement savings guidelines. Individual circumstances vary.
How to Calculate How Much to Save — Step by Step
To reach a savings goal, you need to solve for the monthly contribution (PMT) given a future value target, interest rate, and time horizon.
- 1Step 1: Define your goal clearlySet a specific target: emergency fund (3–6 months expenses), down payment, vacation, car, college. Example: $20,000 down payment in 3 years.
- 2Step 2: Set your time horizon (n)n = years × 12. 3 years = 36 months.
- 3Step 3: Estimate your return rate (r)HYSA: 4–5% APY → r = 4.5/12/100 = 0.00375. Brokerage (5–10yr): 7% → r = 0.005833. Short goals (<3yr): use HYSA/CD rates. Long goals: consider index funds.
- 4Step 4: Solve for monthly contributionPMT = 20,000 × 0.00375 / [(1.00375)^36 − 1] = 75 / [1.1448 − 1] = 75 / 0.1448 = $518/month.
- 5Step 5: Add lump sum if you have oneIf you start with $5,000 already saved: it grows to $5,000 × (1.00375)^36 = $5,724. Remaining needed: $20,000 − $5,724 = $14,276. New PMT = 14,276 × 0.00375 / 0.1448 = $370/month.
- 6Step 6: Automate and trackSet up automatic transfers on payday. Even $50/month extra accelerates goals. Check progress quarterly and adjust if income changes.
Savings Goal Examples
Monthly Savings Needed for Common Goals
Assuming 4.5% APY (HYSA) — starting from $0
| Goal | Target | Timeline | Monthly Needed |
|---|---|---|---|
| Emergency fund (3 mo) | $9,000 | 1 year | $733 |
| Emergency fund (6 mo) | $18,000 | 2 years | $706 |
| Down payment (FHA, 3.5%) | $14,000 | 2 years | $549 |
| Down payment (20%) | $60,000 | 5 years | $899 |
| New car | $30,000 | 3 years | $815 |
| Vacation fund | $5,000 | 1 year | $407 |
How Long to Save $100,000?
Starting from $0, 4.5% APY
| Monthly Saving | Time to $100K | Total Contributed | Interest Earned |
|---|---|---|---|
| $500 | 14.5 yrs | $87,000 | $13,000 |
| $750 | 9.3 yrs | $83,700 | $16,300 |
| $1,000 | 6.9 yrs | $82,800 | $17,200 |
| $1,500 | 4.6 yrs | $82,800 | $17,200 |
| $2,000 | 3.5 yrs | $84,000 | $16,000 |
Frequently Asked Questions
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This calculator is for educational purposes only and does not constitute financial advice.