Should I invest money for a short-term goal?

Generally no. For horizons under three years the risk of a downturn arriving just before you need the money outweighs the extra expected return.

How large should an emergency fund be?

Most guidance suggests three to six months of essential expenses, held in an instant-access account.

What if I cannot afford the monthly amount?

Extend the deadline, lower the target, or split the difference. The calculator makes the trade-off explicit — try a longer number of months and see how the deposit falls.

Savings Goal Calculator

Set a target amount and a deadline and this calculator works backwards to the monthly deposit you need, taking any interest your account pays into account.

Fill in the fields above and select Calculate to see your result and the full working.

Please note: Financial calculators produce estimates using the figures you enter. They exclude fees, taxes, insurance and rate changes unless a field asks for them. They are not financial advice — confirm any significant decision with a qualified adviser or your lender.

Formula used

Deposit = (goal − future value of current savings) × r ÷ ((1 + r)ⁿ − 1)

How to use this calculator

Enter the total you need and anything you have already put aside.
Set how many months you have before you need the money.
Add the interest rate your savings account pays, or leave it at zero.
Automate the resulting deposit on payday — saving what is left at month end rarely works.

Example calculation

Saving $15,000 in 36 months with $2,000 already saved at 3%:

Existing $2,000 grows to about $2,188

Remaining $12,812 ÷ the annuity factor gives roughly $340 a month.

What does this result mean?

For short goals — anything under about three years — interest barely moves the needle, so the deposit is close to the goal divided by the months remaining. Keeping money you will need soon in cash rather than investments is the right call precisely because a market drop just before the deadline cannot be recovered in time.

Frequently asked questions

Should I invest money for a short-term goal?: Generally no. For horizons under three years the risk of a downturn arriving just before you need the money outweighs the extra expected return.
How large should an emergency fund be?: Most guidance suggests three to six months of essential expenses, held in an instant-access account.
What if I cannot afford the monthly amount?: Extend the deadline, lower the target, or split the difference. The calculator makes the trade-off explicit — try a longer number of months and see how the deposit falls.

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