How it's calculated
Without interest, it's straightforward: (goal − already saved) ÷ number of months. For a €1,200 holiday in 8 months, starting from zero, you need to put aside €150 a month.
With an interest-bearing account, each deposit earns a little interest until your target date. The calculator works out the fixed monthly deposit that, interest included, reaches your goal on time.
3 tips to hit your goal
- Pay yourself first: set up a standing order for the day your salary arrives.
- One goal, one account or pot: you can see what's set aside and you leave it alone.
- Start with safety: an emergency fund stops the first surprise from emptying your plans.
Frequently asked questions
How do I work out how much to save each month?
Subtract what you've already saved from your goal, then divide by the number of months until your date. With an interest-bearing account, the interest slightly reduces the monthly effort: the calculator takes it into account if you enter a rate.
Which interest rate should I enter?
The annual rate of your savings account. Rates change over time, so check the current one with your bank. Leave 0 if your money sits in a current account.
What if the monthly amount is too high?
You can push the date back, lower the goal or find the money in your budget (a category to trim). A standing order on payday makes a big difference to sticking with it.