How much should I save every month?

A common rule is to save at least 20% of your income. For a specific goal, divide the target by the months available, then reduce that amount because interest will do part of the work.

What interest rate should I assume?

For safe savings use 4-7% (savings accounts, FDs, bonds). The higher the rate, the lower your monthly deposit needs to be.

Savings Goal Calculator

Set a target amount and see the monthly deposit you need.

Savings Goal

Savings Goal ($)

Annual Interest Rate (%)

Time to Goal (years)

yrs

Compounding

Monthly Deposit Needed

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Total Deposits

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Interest Earned

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How much to save each month

Without interest, reaching $10,00,000 in 10 years needs about $8,333 a month. With 6% interest compounded monthly, the required deposit drops to about $6,100 — the difference is the interest doing the work. The earlier you start, the less you need to save.

Savings Calculator FAQ

Should I save or invest for my goal?▶

For goals within 2-3 years, use safe savings products. For long-term goals, investing in equities historically earns more, so you need to save less each month — but with more risk.

Can I start with a smaller deposit?▶

Yes — increase the time to goal, raise the assumed rate, or lower the goal. Any small regular deposit beats waiting until you can save a large amount.

Goal: Monthly deposit to reach target

Reverse: Solve for contribution

Inflation: Adjust goal for rising costs

Automate: Rich first, spend rest

Savings Goal Calculator — what monthly deposit hits your target?

Instead of guessing, this savings calculator works backwards: you tell it the goal amount, the rate and the time horizon, and it tells you exactly how much to deposit each month to get there. Whether it's a down payment, a dream vacation or an emergency fund, plan it precisely.

The math behind the monthly deposit

Monthly deposit = Goal × r ÷ [(1 + r)^n − 1], where r is the monthly rate and n the number of months.

To save $10,00,000 in 5 years at 8%: the deposit is about $13,600/month, not the $16,667/month simple division would suggest — the gap is compounding working for you.

A 6-month emergency fund (3–6× monthly expenses) is the first goal every planner recommends before investing.

Inflation-proofing the goal

A $50,00,000 retirement goal today is worth far less in 20 years. Use a real rate (return − inflation) to automatically inflate the target.

For education costs growing at 10% p.a., a $20,00,000 college cost in 15 years is $83,55,000 — plan with the inflated number.

Review the goal annually and adjust deposits for salary increases and actual inflation.

How to use this calculator

Enter your savings goal amount.
Set the annual rate of return you expect on your savings.
Choose the time horizon in years.
The calculator shows the required monthly deposit, total deposited and total interest earned.

Pro tips

Pay yourself first: automate the deposit on salary day.
Use a higher rate only if you invest in equity; use 5–6% for pure deposits.
Split big goals into yearly milestones for motivation.

Frequently asked questions

How much should I save each month?▶

The 50/30/20 rule suggests 20% of income to savings. The right '20%' depends on your goal — this calculator tells you the exact number for a specific target.

What is an emergency fund?▶

3–6 months of essential expenses kept liquid (savings account or FDR). It prevents debt when unexpected costs hit.

Savings Calculator