Calculate how much money you need to contribute each month in order to arrive at a specific savings goal.
Simply enter your desired savings goal, initial investment, the number of years you plan to save, and the estimated annual interest rate. The calculator will show you how much you need to contribute each month to reach your goal. You can also select different compounding frequencies to see how they impact your savings.
Compound interest is the interest on a loan or deposit that is calculated based on both the initial principal and the accumulated interest from previous periods. Essentially, it's interest on interest, which can accelerate your savings growth over time.
The compounding frequency (monthly, quarterly, semi-annually, annually, or daily) affects how often interest is calculated and added to your savings. More frequent compounding results in more interest accrued, which helps your savings grow faster.
Setting a realistic savings goal involves understanding your financial needs, the time frame in which you want to achieve them, and your capacity to save. Use our calculator to input different scenarios and find a savings plan that works best for you.