How do I calculate savings goal?

Monthly savings needed = (Goal − Current savings × (1+r)^n) / ((1+r)^n − 1) × r, where r = monthly interest rate and n = number of months. This accounts for compound interest on both your existing savings and new monthly contributions.

How long will it take to save a certain amount?

Use this calculator: enter your goal amount, current savings, monthly savings amount and interest rate. The calculator will show exactly how many months and years it will take to reach your goal with compound interest.

What is a good savings interest rate in India?

Savings accounts: 3–7%. Fixed deposits: 6–7.5%. Liquid mutual funds: 6–7%. RD (Recurring Deposit): 6.5–7.5%. PPF: 7.1% (tax-free). For long-term goals (5+ years), equity mutual funds historically give 12–15% CAGR.

🎯 Savings Planner

Savings Goal Calculator

Find exactly how much to save per month to reach any financial goal. Emergency fund, vacation, car, home — with interest earned and monthly milestone tracking.

What are you saving for?

Savings goal amount (₹)

₹

Your target amount

Current savings (₹)

₹

Already saved toward this goal

Annual return rate (%)

Time to reach goal

Monthly savings needed —

—Total you save

—Interest earned

—Months / Years

Progress toward goal Starting: 0%

₹0 now Goal: ₹5,00,000

Interest / returns bonus

Money working for you

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📅 Savings milestones

Month-by-month savings tracker

Month	Contribution	Interest	Balance	Progress

How to use this savings goal calculator

Choose your goal type, enter the target amount, your existing savings and the time frame. The calculator shows exactly how much to save monthly, with a month-by-month breakdown including interest earned.

🛡️ Emergency fund

Financial experts recommend 3–6 months of living expenses as an emergency fund. If your monthly expenses are ₹50,000, target ₹1.5–3 lakh. Keep it in a high-interest savings account or liquid fund for quick access.

🏠 Down payment

For a home loan, most banks require 10–20% down payment. On a ₹50 lakh flat, you need ₹5–10 lakh saved. Start early — saving ₹15,000/month for 3 years at 7% gives you ₹5.8 lakh.

💡 Power of returns

Higher return rates dramatically reduce monthly savings needed. For ₹5 lakh in 3 years: at 0% you save ₹13,889/month. At 12% you save only ₹11,424/month — saving ₹88,000 in total contributions.

📅 50-30-20 rule

A simple budgeting rule: 50% of take-home income for needs, 30% for wants, 20% for savings and investments. If you earn ₹60,000/month, target ₹12,000/month toward savings goals.

Frequently asked questions

How much should I save per month for an emergency fund?

Calculate your monthly expenses (rent, food, utilities, EMIs, subscriptions). Multiply by 3–6. That's your target. If your monthly expenses are ₹40,000, you need ₹1.2–2.4 lakh. Use this calculator to find exactly how much to save monthly to build it in your desired timeframe.

Where should I keep my savings goal money?

Short-term goals (under 1 year): High-yield savings account (3.5–6%) or liquid mutual funds (6–7%). Medium-term (1–3 years): FD or RD (6.5–7.5%) or debt mutual funds. Long-term (3+ years): PPF (7.1%, tax-free), or equity mutual funds (10–15% historically).

How do I save more money each month?

1) Set up automatic transfer on salary day (pay yourself first). 2) Cancel unused subscriptions. 3) Cook more, eat out less. 4) Use the 24-hour rule before any non-essential purchase. 5) Increase savings by 1% each time you get a raise. Even ₹500 extra per month compounds significantly over 5+ years.

Does interest really make a big difference for savings goals?

Yes, significantly. To save ₹10 lakh in 5 years: at 0% interest you need ₹16,667/month. At 7% (RD/FD), you need only ₹13,795/month. At 12% (equity MF), only ₹12,244/month. Over 5 years, the 12% return saves you ₹26,520 in total contributions vs cash savings.