Required Savings Rate Calculator
Find the monthly amount you must save to hit a financial goal, given your current savings, timeframe and expected return.
How it works
Required monthly = (goal − current × (1 + i)^n) ÷ (((1 + i)^n − 1) ÷ i), where i = annual return ÷ 12 and n = years × 12
This works backward from a goal to the monthly saving that reaches it. It first grows your current savings to the target date, subtracts that from the goal to find the gap the contributions must fill, then solves the annuity formula for the level monthly payment that closes it. Expressing the result as a share of income turns an abstract target into a budgeting decision — and shows immediately whether the goal is realistic or needs a longer timeframe, a higher return, or a bigger head start.
Worked example
To reach $1,000,000 in 25 years at a 7% return, $20,000 of current savings first grows to about $114,511, leaving a $885,489 gap. Filling it needs roughly $1,093 a month — about 16.4% of an $80,000 income — for a total of around $347,918 contributed over the period.
Frequently asked questions
What savings rate is realistic?
Financial guidelines often suggest saving 15–20% of income for retirement, but the right rate depends on your goal, timeframe and how much you have already. If this calculator demands far more than that, consider extending the timeframe or trimming the goal.
Why does starting earlier lower the required amount so much?
More years means more compounding on both your current savings and each contribution, so a longer runway sharply cuts the monthly amount needed. Time in the market does more heavy lifting than a higher contribution added late.
Does this account for inflation?
No — it targets a fixed future dollar amount. If your goal is stated in today’s dollars, inflate it first or use a real (after-inflation) return so the monthly figure keeps its purchasing power.
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Educational estimate only, not financial or tax advice. Retirement, contribution and tax rules change and depend on your personal situation — confirm with a licensed financial or tax professional.