What is the Savings Goal?
A savings goal plan works backwards: instead of saving whatever is left and hoping, you fix the target and the date, then let the math dictate the monthly amount. The moment a dream has a monthly number, it becomes a line item you can automate.
The calculator accounts for two accelerators most people ignore: your existing savings keep compounding until the goal date, and every future contribution earns returns too — so the required monthly saving is always less than "goal ÷ months".
Formula & worked example
Required monthly saving for a future value gap G at monthly return i over N months:
Worked example: ₹15 lakh in 5 years at 10%, with ₹1 lakh saved → the ₹1L grows to ₹1.61L; the ₹13.39L gap needs ≈ ₹17,148/month. Naive division (15,00,000 ÷ 60 = ₹25,000) overshoots by ₹7,852 a month — returns do real work even over 5 years.
How to use this savings goal calculator
- Set the goal amount in future rupees — inflate today’s price first with our Inflation Calculator for goals beyond ~3 years.
- Enter current savings earmarked for this goal and the deadline.
- Choose a return matching the horizon: ~6–7% (FD/RD) under 3 years, ~10% (hybrid) for 3–7, ~12% (equity SIP) beyond 7.
- Automate the resulting amount as a SIP or RD on salary day.
Smart tips
- One goal, one bucket: separate SIPs/RDs per goal stop the wedding fund from eating the house deposit.
- De-risk near the finish: for equity-funded goals, shift to debt/FD in the final 1–2 years so a crash cannot wreck a dated goal.
- Windfalls (bonus, gifts) into the goal cut months off the timeline — rerun the calculator after each top-up.
- If the monthly number is impossible, change one of three dials: later date, cheaper goal, or higher-return bucket (with eyes open).
- Track progress monthly; visible progress bars are the strongest motivator in personal finance.
Frequently asked questions
How much should I save each month for a goal?
Exactly what the formula says — it depends on the amount, deadline, expected return and what you already have. As a share of income, most planners suggest all goals combined should fit within 20–30% of take-home pay; if not, timelines need stretching.
Should I use an FD, RD or SIP for my goal?
Match risk to time: under 3 years use RD/FD (guaranteed, ~7%); 3–7 years hybrid or balanced funds (~9–10%); 7+ years equity SIPs (~12% historically). A dated short-term goal should never depend on the stock market’s mood.
Do I plan with today’s price or the future price?
Future price. A ₹15L wedding today costs ~₹20L in 5 years at 7% inflation. Inflate first, then compute the monthly saving — otherwise you will reach the date 25% short.
What if I already have some savings?
Enter them — they compound until the deadline and shrink the monthly requirement, often dramatically. ₹1 lakh today at 10% covers ₹1.61 lakh of a 5-year goal by itself.
What return assumption is safe?
Use conservative numbers so surprises are pleasant: 6.5% for FDs/RDs, 10% for hybrid, 11–12% for long equity. If you hit the goal early, nothing is lost; planning at 15% and getting 10% breaks the plan.
Want the theory behind the numbers? Read our savings goal plans on the Money Blog.