Savings Goal Calculator

How to use this savings goal calculator

Start with the goal and deadline — a house down payment, a car, a wedding, an emergency fund. Enter what you already have saved and the return your money will realistically earn (use your actual savings account rate, not a hopeful number or a short-term promo rate). The calculator solves for the monthly deposit that gets you there on time.

The sinking-fund formula

With monthly compounding, the required monthly deposit solves the future-value-of-annuity equation:

PMT = [FV − PV(1 + r)ⁿ] × r ÷ [(1 + r)ⁿ − 1]

• PMT — required monthly deposit
• FV — your savings goal
• PV — current savings
• r — monthly return (annual return ÷ 12)
• n — months until your deadline

At a 0% return the formula reduces to simple division: (goal − savings) ÷ months.

What the results tell you

Two numbers matter: the required monthly contribution and the reality check. If the required amount doesn't fit your budget, the reality check shows the goal your money actually supports at half that contribution — or you can extend the timeline and watch the required amount fall. The year-by-year table shows how interest contributes more each year as the balance grows; our compound interest calculator lets you explore that compounding in depth.

Where to park goal savings

For goals under 3–5 years, a high-interest savings account (HISA) or GIC ladder keeps the principal CDIC-insured and available — and inside a TFSA, the interest is tax-free. For goals beyond 5 years, a diversified index fund has historically earned more — but can drop 20–30% in a bad year, which is a real problem if the deadline is fixed. Match the risk to the deadline, not to your optimism.

What this calculator doesn't include

Taxes on interest (owed annually in taxable accounts), inflation eroding the goal's purchasing power, and contribution increases over time are not modeled. If your goal is years away, consider raising the target by 2–3% per year to account for inflation.