Savings Goal Calculator

How much to save each month

To reach a goal by a date, divide the target into monthly deposits that, together with interest, add up to the goal. The formula is monthly deposit = goal × i ÷ ((1 + i)ⁿ − 1), where i is the monthly interest rate (annual rate ÷ 12) and n is the number of months.

Example: to build ₹3,00,000 in three years at 7% a year, i = 0.07 ÷ 12 ≈ 0.00583 and n = 36. The required deposit is about ₹7,513 a month. Without interest you would need ₹8,333, so interest contributes about ₹29,500 of the goal.

Planning tips

Start with an emergency fund of a few months of expenses before saving for wants. Break large goals into separate pots so each has its own date and deposit. If you already have savings set aside, they grow too, so subtract their future value from the goal before working out the monthly amount.

Goals more than a few years away should be adjusted for inflation. At 6% inflation, something that costs ₹3,00,000 today will cost about ₹3,57,000 in three years.

Choosing where to keep the money

Short-term goals belong in low-risk options such as recurring deposits or savings accounts, where the rate is known. Market-linked investments may earn more over long periods but can fall just before you need the money, so the shorter the timeline, the safer the option should be.