Goal Savings Rate Calculator
Work out the annual and monthly amount — and the share of your income — you must save to hit a savings goal by a set date.
How it works
FV of current = current × (1 + r)^years · Needed from saving = goal − FV of current · Annual saving = needed × r ÷ ((1 + r)^years − 1) · Savings rate = saving ÷ income
This is a sinking-fund calculation: it finds the level annual contribution that, together with growth on what you already have, reaches your goal on time. Because your existing savings compound in the meantime, the contribution needed is lower than simply splitting the shortfall across the years. Expressing it as a share of income turns the goal into a concrete savings rate you can budget around.
Worked example
To reach $50,000 in 5 years at 5% with $5,000 already saved: the $5,000 grows to about $6,381, leaving $43,619 to fund. The required annual contribution is 43,619 × 0.05 ÷ (1.05^5 − 1) ≈ $7,890/year, or roughly 13.2% of a $60,000 income.
Frequently asked questions
Why is the amount less than the shortfall divided by years?
Because both your existing savings and each new contribution earn a return along the way. Compounding does part of the work, so you contribute less than a flat split of the gap would require.
What return should I use?
Match it to where the money sits: a few percent for a high-yield savings account or CD, higher for a diversified investment portfolio. Higher assumed returns lower the required contribution but add risk, so be realistic for a fixed-date goal.
Is this the same as a savings rate for retirement?
The math is the same sinking-fund idea, but retirement goals span decades and usually target a nest egg tied to expenses. Use a dedicated FIRE or retirement calculator for that; this one is best for defined, dated goals.
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Educational estimate, not financial advice.