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About

Most calculators ask "What will I have?". This tool answers the more practical question: "What do I need to do?". Whether saving for a house down payment, a wedding, or a new vehicle, the Savings Goal Calculator works backward from your target FV to determine the required monthly liquidity flow (PMT).

It incorporates a "Feasibility Check" to ground your aspirations in reality. If the required monthly saving exceeds reasonable limits based on typical income brackets or requires impossible interest rates, the tool visually signals the difficulty, encouraging you to adjust the timeline or the target.

savings goal budget planning calculator

Formulas

The formula rearranges the annuity calculation to solve for PMT:

PMT = FV rn1 + rnnt - 1

Note: If an initial deposit exists, its future value is subtracted from the Goal FV before calculating the payment.

Reference Data

Goal CategoryAverage Cost (USA)Rec. Timeframe
Wedding$30,0001 - 2 Years
New Car (Non-Luxury)$48,0003 - 5 Years
House Down Payment (20%)$85,0005 - 7 Years
Emergency Fund$15,0000.5 - 1 Year
European Vacation$6,0001 Year

Frequently Asked Questions

You have three levers: 1) Extend the "Deadline" (most effective), 2) Lower the "Goal Amount", or 3) Find a higher yield savings account (least effective for short terms). The tool helps you balance these variables.
Generally, no. If your goal is less than 3-5 years away, the stock market volatility is too risky. High-Yield Savings Accounts (HYSA) or CDs are safer vehicles, typically offering 3-5% APY without risk to principal.
This assumes end-of-month contributions, aligning with typical paycheck cycles.