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Savings goal: how much to save each month

Updated: 14 November 2026

An educational illustration, not financial, tax or investment advice. Figures are estimates from the formula shown. Your bank, fund house or the official scheme rules decide the actual amount.

Open the savings goal calculator

A savings goal needs four numbers: the target, the date, what you already have, and the return you expect. The monthly amount is what fills the gap. This page shows the formula, a worked example and how to set the target correctly.

Quick answer

  • Target ₹10,00,000 in 5 years, ₹1,00,000 already saved, 7% a year: save about ₹11,988 a month.
  • Your ₹1,00,000 grows to about ₹1,41,763 on its own in that time.
  • Giving it 7 years instead of 5 lowers the monthly amount to about ₹7,750.
  • Set the target in future prices. Inflate today’s cost first.

The formula

The savings goal calculator assumes you save at the end of each month and earn the yearly rate ÷ 12 every month. With goal G, current savings H, monthly rate i and n months:

Monthly amount = (G − H × (1 + i)n) × i ÷ ((1 + i)n − 1)

If what you already have grows past the goal by itself, the answer is zero.

Worked example

CaseMonthly saving
₹10 lakh in 5 years, ₹1 lakh saved, 7% return₹11,988
Same, but 7 years₹7,750
Same 5 years, no return at all (kept as cash)₹15,000

The return does real work: at 7% you save about ₹3,000 a month less than keeping the money as cash.

Set the target in future prices

A down payment that costs ₹10 lakh today will cost more in 5 years. Use the inflation calculator to turn today’s cost into the future cost, then enter that as the goal. See the impact of inflation.

Pick a return that suits the time

  • Under 3 years: safe options such as an RD or FD. Use their rate.
  • 5 years or more: some people use a SIP in mutual funds. Use a cautious return, because a fall just before the date can hurt.

How to use the calculator

  1. Enter the goal and the number of years.
  2. Enter what you have already saved for it.
  3. Enter the return you expect, and drag the time slider to see how waiting longer changes the monthly amount.

Limits

A steady return and month-end deposits are assumed. Tax, fees and changes in the return are not included.

Sources

If this page and the official notice disagree, follow the notice.

FAQ

How much should I save each month for a goal?
Use (Goal − Current savings × (1 + i)^n) × i ÷ ((1 + i)^n − 1), with i the monthly return and n the months. The calculator does this for you.
How much to save for ₹10 lakh in 5 years?
With ₹1 lakh already saved and a 7% return, about ₹11,988 a month. With no return, ₹15,000.
Should I include inflation?
Yes, if the goal is a future price. Inflate today’s cost first, then use that as the goal.
What if the result is zero?
Your current savings will grow past the goal by themselves at that return.
Which return should I use?
For short goals, a deposit rate. For long goals, a cautious market return.

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