How to Use Savings Plan Calculator
The Savings Plan Calculator solves for the recurring deposit required to hit a financial goal. Enter your goal, current savings, interest rate, time horizon, and deposit frequency. The Savings Plan Calculator returns the periodic deposit, total contributions, and total interest.
- Set future value goal and current savings.
- Enter the interest rate and timeline.
- Pick deposit frequency.
- Review the result.
Formula & Theory - Savings Plan Calculator
The Savings Plan Calculator uses:
PMT = (FV - PV · (1 + i)^n) · i / ((1 + i)^n - 1)
i = APR / m
n = m · years| Symbol | Meaning |
|---|---|
| FV | Future value goal |
| PV | Current savings |
| m | Periods per year |
| i | Per-period rate |
| n | Total periods |
Assumptions and Limits
The Savings Plan Calculator uses a constant rate and uniform deposits. Real accounts may compound differently or charge fees.
Use Cases for Savings Plan Calculator
- Down payment - solve for monthly deposit to a target down payment.
- Retirement bridge - back-solve weekly contributions to a milestone.
- College fund - target a future tuition number.
- Wealth planning - explore tradeoffs between time horizon and deposit size.