Savings Goal – Free Online Utility
Plan your savings to reach a specific financial goal.
₹
₹
Years
%
Required Monthly Savings
₹12,596
every month for 5 years
Total Principal Saved₹ 805,754
Estimated Interest Earned+₹ 194,246
What is a Savings Goal Calculator?
A savings goal calculator helps you determine exactly how much money you need to put away on a monthly basis to reach a specific financial target within a set timeframe. It takes into account your current savings and the compound interest you expect to earn along the way.
Why do I need to factor in interest?
If you keep your money under a mattress, you have to save 100% of your target out of your own pocket. However, if you invest it in a savings account, index fund, or bonds, your money earns a return. This means compounding interest does some of the heavy lifting for you, significantly reducing the monthly amount you actually need to save.
Frequently Asked Questions
It uses the future value of an annuity formula. It takes your target goal, subtracts the future compounded value of your current savings, and then calculates the exact monthly contribution needed to bridge the gap.
If you keep your savings in a bank account or investment fund, it will earn interest over time. This compounding interest does some of the heavy lifting for you, reducing the amount you need to save out of your own pocket.
Simply enter 0 for the Current Savings. The calculator will determine the monthly amount required starting from scratch.
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