To work out how much to save each month, subtract what you already have from your goal and divide by the months left. To save $1,200,000 in 10 months when you already have $200,000, that's $100,000 a month. With inflation, review a goal in local currency now and then: the price of what you want goes up.
"I need to save" is hard to stick to; "I need to set aside $100,000 a month until July" is easier. This calculator turns a goal into a monthly amount: enter how much you want to save, in how many months and what you already have, and it tells you how much to set aside each month and, roughly, each week.
The calculator
Enter the amount you want to save and in how many months to see how much to set aside each month.
Educational tool. The maths adds no interest or inflation and is not financial advice.
How it's calculated
What's left is the goal minus what you already have. The amount to set aside each month is what's left divided by the number of months. The weekly figure is the monthly one times 12 divided by 52, because a year has 12 months and 52 weeks.
Worked example. You want to save $1,200,000 for a trip in 10 months and already have $200,000. You're $1,000,000 short: that's $100,000 a month, about $23,077 a week.
The maths adds no interest and doesn't account for inflation. If the goal is in a currency that loses value and it's a long way off, the price of what you want will probably rise along the way: the inflation calculator shows by how much, with the inflation you expect.
Making the monthly amount stick
- Set it aside as soon as you get paid, not from whatever's left at the end of the month. What's left almost never arrives.
- If the amount doesn't fit your month, stretch the timeline or shrink the goal before you start. An amount that breaks in month two is more discouraging than a small one you keep.
- If you get a bonus or extra income, decide in advance how much goes to the goal: it shortens the timeline without touching the month-to-month amount.
- If the goal is in another currency (a trip in dollars, say), set the goal in that currency and convert each contribution at that day's rate.
The goal, in Kesef
A savings goal in Kesef does this same maths and keeps track of it over time. Enter the amount and a date; every time you set money aside you log it as a contribution, and the app tells you how much is left, your pace, and how much per month you'd need to hit the date. Each goal has its own currency. Your first 2 active goals are free.
Frequently asked questions
How do I work out how much to save each month?
Subtract what you already have from your goal and divide by the months left. For example, $1,000,000 left over 10 months is $100,000 a month.
Does the calculator include interest?
No. It's the maths without any return, on purpose: adding interest means assuming a product and a rate. If the money you set aside earns something, you'll get there a little sooner; if the goal rises with inflation, a little later.
What if I can't hit the monthly amount?
Try more months or a smaller goal until the amount fits your month. An amount you always hit beats a bigger one you give up on.
Does it work for an emergency fund?
Yes, but to work out how big the fund should be, the emergency fund calculator starts from your essential expenses and the months you want to cover.