How the savings plan is calculated
Every month, your balance first earns profit at the monthly rate (yearly rate ÷ 12) and then your deposit is added. For "how much per month" the calculator uses the standard annuity formula: deposit = (goal − start × g) × r ÷ (g − 1), where r is the monthly rate and g = (1 + r)ⁿ for n months. With a 0% rate it is simply (goal − already saved) ÷ months.
Making a goal happen
- Name the goal. A laptop, Umrah, a wedding fund or three months of emergency savings are easier to stick to than "save more".
- Pay yourself first. Move the monthly amount into a separate account on salary day, before spending.
- Start small, then step up. Raise the deposit whenever your income rises, and test it here.
- Be careful with promised returns. Use the real rate from your bank, and set 0% if you are unsure.
Planning to borrow instead? Compare with the EMI calculator. For percentages of your income use the percentage calculator.
Frequently asked questions
How is the time to reach a goal calculated?
Each month your balance earns the monthly rate (yearly rate ÷ 12) and then your deposit is added. The calculator repeats this until the balance reaches your goal.
How much should I save each month?
A common rule is to save at least 20% of your income, but any steady amount helps. Use the 'monthly amount' mode with your deadline to see what is needed and whether it fits your budget.
What profit rate should I enter?
Use the rate your bank or savings account actually pays, and remember it can change. If you are unsure, use 0% for a safe estimate based only on your deposits.
Does this work for a committee (BC)?
Yes, as a simple plan. Enter 0% because a committee pays no profit, and set the monthly amount to your committee instalment.
Why is the date later than I expected?
Usually the deposit is too small or the goal is large. Increase the monthly amount a little, or add a starting amount, and watch the months drop.