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The Savings Calculator allows you to figure out how to save for a goal by answering all questions related to savings. The calculator allows you to solve for one of the following variables while allowing you to modify the others:
| Number of Years | |
Click this button for answers to questions about how long it will take to reach your savings goal.
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For example, you may want to know 'how long will it take me to be a millionaire if I can invest $1,000 every month to return 10% annually?' |
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Or, 'if I am a bit more conservative and invest in less risky ventures, how long before I reach my goal?' |
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Or, 'if I consider my current invested assets of $100,000, will that help me get there sooner?' |
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Or, 'if I can tighten my belt and contribute $500 more every month, how much sooner will I reach my goal?' |
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| Annual Yield | |
To answer questions about how much your investments should be returning, click the button marked 'Annual Yield'.
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For example, you may want to know 'how much the average annual yield have to be for me to reach my goal?' |
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Or, 'how much do I save every month to reach my goal in a specified amount of time?' |
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Or, 'how much do I save now to reach my goal in a specified amount of time?' |
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| Opening Balance | |
To answer questions about how much money you have to start with in addition to a monthly savings to reach your savings goal, click the marked 'Opening Balance'.
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For example, you may want to know 'if I am saving $100 a month and invest that in a fund averaging 12% for the next 10 years, how much money do I need to invest right now to buy a $20,000 boat?' |
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Or, 'if I want to buy the boat in 5 years how much do I need to invest right now?' |
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Or, 'if I cannot average 12% on my investments but only 8%, does that significantly change the amount I need to invest now?' |
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Or, 'if I can invest a bit more every month, how does that affect the amount I need to invest right now?' |
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Or, 'if I set my sights on a less expensive boat, does that significantly change the amount I need to invest now?' |
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| Monthly Savings | |
By clicking the Monthly Savings button, you will be able to answer several questions about how much to invest monthly to reach your savings goals.
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For example, you may want to know 'how much will I have to invest monthly in order to have a million bucks at the end of 20 years?' |
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Or, 'how much should I invest monthly if I invest in high growth funds returning 15%?' |
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Or, 'how much should I invest if I already have $100,000 saved towards that goal?' |
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Or, 'how much should I invest if I need more than a million bucks, perhaps $1,500,000?' |
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| Ending Balance | |
To figure out what your savings will grow to after a specific number of years, click the button marked 'Ending Balance' and vary any of the other variables.
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For example, you may want to know 'how much will my account have at the end of 20 years, if I contribute $100 every month?' |
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Or, 'how much more will my balance be if I expect a yield of 12% instead of 8% on my investments?' |
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Or, 'if I start with $1,000 instead of $0, how much would my nest-egg be?' |
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Or, 'how far does an increase of $100 go towards realizing my savings goal?' |
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Once you choose a variable to compute, you can then click the diamond shaped sliders next to any of the other variables and drag them to the left or right to an appropriate value to get immediate answers for any number of 'What If' questions. However, if you want to enter an exact value for a variable and the sliders are unable to provide this, you may click the edit field and enter the exact value.
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'What if I wanted to save for a sports car?'
'What if I can be extremely thrifty and invest it monthly?',
'What if I can invest my savings in a high growth fund?',
and more...
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