Formula
Deposit = (Goal − S·(1 + i)^n) × i ÷ ((1 + i)^n − 1)i = annual rate ÷ 12, n = months, S = current savings How it works
Working backwards from a goal turns a vague plan — "save for a down payment" — into a concrete monthly number. The calculator first grows what you already have to the target date, then works out the level monthly deposit that covers the rest, assuming deposits at the end of each month and monthly compounding.
For goals under about three years, the interest rate barely matters, so treat the result as roughly goal ÷ months. For longer goals, a higher-yield account or investing can noticeably cut the monthly amount, though investments can also lose value right when you need the money.
Automating the deposit on payday is the most reliable way to stick to the plan. If the monthly figure is too high, extend the deadline or lower the goal and see how the numbers change.
Frequently asked questions
Where should I keep money for a short-term goal?
For goals within a few years, high-yield savings accounts, money market accounts, CDs or Treasury bills keep the money safe and earn interest. Stocks are better suited to goals at least five years away.
What if I can only save weekly or every two weeks?
Multiply the monthly figure by 12 and divide by 52 for weekly or by 26 for every two weeks. The result is close enough for planning.