Question 1

How do I calculate how much to save monthly for a goal?

Accepted Answer

Use the PMT formula to calculate monthly savings: divide your target amount (minus future value of existing savings) by the future value factor of a monthly annuity. This calculator does this automatically, accounting for compound returns.

Question 2

Does starting with existing savings help significantly?

Accepted Answer

Yes, existing savings compound over the full investment period. Even a small head start can significantly reduce the monthly saving needed because that initial amount earns returns for the entire duration.

Financial Calculators