How much should you save each month for a specific goal?

Give the goal three clear numbers

Write down the amount needed, what is already saved and the number of months available. At zero interest, subtract the current savings from the target and divide the gap by the months. This gives a useful first estimate without relying on an uncertain return.

A worked example

Suppose a fictional goal costs $12,000 and you already have $3,000. The gap is $9,000. Over 12 months, the monthly contribution is $750. With $500 a month and no interest, the same gap takes 18 months. These are arithmetic scenarios, not a recommended savings percentage.

There are three main levers

If the contribution is too high, change the deadline, reduce the target or find a sustainable increase in available cash. Avoid making the result look easier by assuming investment returns that you cannot rely on over a short period.

Keep future prices in view

The savings tool uses nominal dollars. If the future purchase price rises, the target needs updating. Enter interest after any expected tax, and remember that rates can change. Contributions, withdrawals and missed deposits also affect the result.

Check the contribution against your budget

Include annual bills and a cash buffer before committing to the monthly amount. Start with a manageable transfer and review it after major expenses or income changes. A timeline helps you plan; it does not guarantee the money will be available on a particular day.

Official references

General information and fictional examples; independent professional review has not been completed.

Sources checked 22–23 October 2026. Examples and worksheets are our own illustrations.

• MoneySmart: savings goals calculator ↗

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