Savings Goal Calculator
Savings Goal Summary
Your savings plan and monthly requirements
Savings Growth vs Goal Target
What is a Savings Goal Calculator?
A savings goal calculator is a financial tool that helps you determine how much you need to save monthly to achieve your financial targets. It considers your current savings, target amount, time horizon, and expected returns to create a systematic savings plan.
How can a savings goal calculator help you?
- Plan your savings strategy systematically
- Understand monthly savings requirements
- Track progress towards your goals
- Choose appropriate savings products
- Build financial discipline and habits
How do savings goal calculators work?
Our savings goal calculator uses the following approach:
Monthly Savings = (Target Amount - Current Savings × (1 + Return)^Years) × Monthly Rate / ((1 + Monthly Rate)^Total Months - 1)
Where:
• Monthly Rate = Annual Return / 12 / 100
• Total Months = Years × 12
• Future Value = Current Savings × (1 + Return)^Years + Monthly Savings × ((1 + Monthly Rate)^Total Months - 1) / Monthly Rate
Common savings goals:
- Emergency Fund: 3-6 months of living expenses
- Down Payment: 20-30% of property value
- Vehicle Purchase: Car, bike, or other vehicles
- Business Investment: Startup capital or business expansion
- Education Fund: Children's education expenses
- Vacation Fund: Travel and leisure expenses
Savings planning tips:
- Start saving early to benefit from compound growth
- Set realistic and achievable goals
- Automate your savings through standing instructions
- Review and adjust your savings plan regularly
- Consider inflation in your long-term goals
Savings and investment options:
- Savings Account: Safe and liquid for short-term goals
- Fixed Deposits: Higher returns for predictable savings
- Recurring Deposits: Regular savings with compound interest
- Mutual Funds: Equity funds for long-term growth
- PPF: Long-term tax-free savings
- NPS: Retirement-focused savings with tax benefits
Savings strategies:
- 50/30/20 Rule: 50% needs, 30% wants, 20% savings
- Pay Yourself First: Save before spending
- Goal-Based Savings: Separate accounts for different goals
- Automated Savings: Set up automatic transfers
- Emergency Fund Priority: Build emergency fund first