Savings Goal Calculator
Work backwards from your target — find out how much to save each month to hit your goal.
| Total Contributions | $0 |
| Interest Earned | $0 |
How to Use a Savings Goal Calculator
A savings goal calculator reverses the compound interest formula. Instead of asking "how much will I have?", it asks "how much do I need to contribute to get there?" This is called the PMT (payment) calculation.
The PMT Formula
PMT = (FV − PV × (1+r)^n) / (((1+r)^n − 1) / r)
Where FV is your goal, PV is current savings, r is the monthly interest rate, and n is the number of months.
A worked example
A $100,000 goal in five years with $20,000 already saved, at 4.5%, needs $1,116 a month. Of the total, $86,986 is your own money and the bank adds $13,014.
Tips for Reaching Your Savings Goal Faster
- Automate transfers. Set up a direct debit on payday so saving happens before you spend.
- Use a high-interest savings account. Australian savings accounts currently offer 4–5% p.a., which meaningfully reduces the amount you need to save manually.
- Review regularly. A pay rise, bonus, or reduced expense is an opportunity to save more and reach your goal earlier.
- Split goals. Break a large goal into milestones — hitting each one builds momentum.
Common Savings Goals in Australia
A house deposit (typically 10–20% of purchase price) is the most common large savings goal for Australians. At a median house price of $800,000, a 20% deposit is $160,000. Other popular goals include an emergency fund (3–6 months of expenses), a car, overseas travel, or a wedding.