How to Calculate a Savings Goal in 4 Steps
- 1
Set the target amount.
Use the future amount likely to be needed, not only today's price.
- 2
Enter current savings.
Include only funds already dedicated to this goal.
- 3
Choose the deadline and return assumption.
Use a realistic time horizon and a cautious expected return.
- 4
Review the required contribution.
Compare the result with the budget and adjust the target, timeline, or contribution if necessary.
