How Much Should You Save Each Month?
Enter your goal, timeline, and expected return. This calculator estimates the monthly amount you need to invest to hit your target.
What this monthly savings calculator helps you do
If you have a target like building a retirement fund, saving for financial independence, or accumulating a house down payment, the biggest question is usually: How much do I need to save every month?
This calculator works backward from your goal amount. It factors in your current savings, investment growth, and time horizon, then estimates the monthly contribution needed. Instead of guessing, you get a clear monthly number you can plan around.
How to use it
- Savings goal amount: Your target future balance.
- Current savings: What you already have invested toward the goal.
- Years until goal: Time remaining until you want to reach the target.
- Expected annual return: Your average annual growth assumption.
Click Calculate Monthly Savings and the result will show:
- Required monthly savings
- Projected value of your current savings at the end date
- Total amount you contribute over time
- Estimated investment growth
How the math works
The calculation assumes monthly compounding and contributions made at the end of each month. Your current savings are compounded forward, and your monthly contributions are treated as an annuity.
Core idea
Required monthly savings = (Goal − Future value of current savings) ÷ Future value factor of monthly deposits
If your current savings alone can already grow enough to reach the goal, the calculator returns $0/month required.
Choosing a realistic annual return assumption
Conservative
A lower assumption (for example 3% to 5%) creates a bigger monthly target, but reduces the chance of coming up short.
Moderate
Many long-term diversified portfolios are modeled around 6% to 8% nominal return assumptions. This is common for planning, but never guaranteed.
Aggressive
Higher assumptions can make the required monthly savings look easier, but increase the risk that real-world returns disappoint.
If your monthly number is too high
That’s normal. Use the result as a planning tool, then improve one or more levers:
- Increase your timeline (more years lowers required monthly savings).
- Raise income and automate the increase into investments.
- Cut recurring expenses and redirect that cash flow.
- Start with a smaller monthly amount and increase it every 6–12 months.
- Revisit whether your goal amount is still the right target.
Example scenario
Suppose your goal is $500,000 in 20 years, you currently have $25,000, and expect an average annual return of 7%. The calculator estimates the monthly amount needed so your contributions plus compounding can reach that target.
Try changing only one variable at a time (years, return, or current savings). You’ll quickly see which lever has the biggest impact on your required monthly contribution.
Important notes
- This is a planning estimate, not a guarantee.
- Market returns vary year to year.
- Inflation is not directly adjusted in this simple model.
- Taxes, fees, and account type can materially affect outcomes.
For major decisions, consider stress-testing with lower return assumptions and discussing your plan with a qualified financial professional.