Finance
Calculator for savings target
Estimate the monthly contribution wey you need to reach future savings target.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Monthly contribution wey you need
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How you go reach the target
| Amount | |
|---|---|
| Current amount after growth to the target date | — |
| Gap wey contributions must cover | — |
| All monthly contributions | — |
| Interest for the plan | — |
Wetin make up the target
We scale bars to the target. Interest on contributions na the part of the target wey neither your current savings nor your monthly payments cover directly.
Balance for each year on this plan
| Year | Balance |
|---|
You dey contribute at the end of each month and the rate stay fixed. The final year go reach the target if the gap positive.
Formula
Monthly rate = annual rate ÷ 12. Grown current amount = current amount × (1 + monthly rate)months. Required contribution = (target − grown current amount) ÷ [((1 + monthly rate)months − 1) ÷ monthly rate]. If the current amount after growth don already reach target, the contribution wey you need na $0.
Example wey show the calculation
Target $50,000 for 5 years, starting with $5,000 at 3%: $5,000 dey grow to $5,808.08, so gap of $44,191.92 remain. Across 60 end-of-month contributions at 0.25% per month, contribution wey you need na $44,191.92 ÷ 64.65 = $683.59 per month.
Where e fit work and limits
We assume rate stay constant, you no miss contributions, and we no count taxes, fees or inflation, so target na nominal dollars. If your current amount go grow past the target already, no contribution dey needed; your plan don get enough funding under these assumptions.
Questions wey people dey ask often
Wetin if my current savings don already grow pass the target?
Then the contribution wey you need na $0. The calculator dey show current amount after growth above target, and you no need add anything under these assumptions.
Why higher rate dey reduce the monthly amount?
Because interest dey cover more of the gap. But higher assumed rate also get more risk: if actual return lower, the plan go fall short.
Na for month start or month end contributions dey happen?
For month end, as the original calculator dey do am. If you start one month earlier, the amount wey you need go reduce a little.
Make I adjust the target for inflation?
This calculator dey work with nominal dollars. If target na future price, enter the future amount after inflation, no be today's price.
Wetin if I no fit afford the amount wey I need?
Add more time, increase assumed rate only if you fit justify am, or reduce target. When you change years, the calculator dey show the trade-off directly.
Other tools wey relate to dis
- Calculator for compound interest — project growth forward instead of solving backwards
- Calculator for retirement savings — the same idea for longer period
- How long emergency fund fit last — how long savings fit cover spending
Results na estimates; dem no replace advice from qualified professional.