Savings Goal Calculator

The Savings Plan answers one question: how much would you need to set aside each month to reach a target amount by a chosen date? It uses four inputs — your target, what you have already saved, the number of months, and an annual return you choose.

From inputs to a plan

The tool subtracts what you have already saved (plus any growth on it) from the target, then calculates the equal end-of-month contribution needed to close the gap. The annual return is treated as a nominal rate compounded monthly. It also builds a month-by-month schedule showing how the balance would grow. Your income and spending from the Healthcheck show whether that contribution fits comfortably within your current monthly surplus.

Calculations versus assumptions

• Your inputs: target, amount saved and time horizon.
• Assumption: the annual return. Real returns vary and may be negative.
• Calculated: the monthly contribution and the projected balance each month.

Hypothetical example

A target of €10,000 with €2,000 already saved over 24 months needs about €333 a month at a 0% return. At an assumed 3% annual return, the required contribution falls to about €319, because the savings earn a little along the way. Extending the horizon or raising the assumed return lowers the monthly amount; shortening it raises it.

Important limitations

• Returns are an assumption, not a promise; inflation, fees and taxes are not modelled.
• Contributions are assumed to be equal and made every month.
• The plan is educational and does not recommend any savings or investment product.