How to use it
- Enter the amount you can save each month. Leave the starting balance at 0 if you are starting fresh.
- Set the return to 0 to see what you save on your own, then try a realistic rate to see the added growth.
- Use the year-by-year table to set milestones, for example an emergency fund in year two.
The formula
FV = M × ((1 + i)^N − 1) ÷ i
M is the monthly amount, i the monthly rate and N the number of months. With i = 0 this is simply M × N.
Worked example
Save 150 a month for 5 years.
With no return: 150 × 60 = 9,000.
At 4% a year compounded monthly: about 9,945 — around 945 from returns.
Assumptions
- Deposits are the same every month.
- Returns are an estimate and are not guaranteed.
Common mistakes
- Skipping the 0% scenario. Your own deposits usually do most of the work for short goals.
- Forgetting that one missed month removes that deposit and all the growth it would have earned.
Questions
How much should I save each month?
Work backwards from a goal: try different monthly amounts until the final balance reaches it, then check that amount fits your budget.
Should I deposit at the start or end of the month?
Depositing at the start gives each deposit one extra month of growth. Choose the option that matches when you actually transfer the money.
Estimates only. Your actual figures depend on the provider’s terms.