📖 Overview
Use this tool to back-solve monthly savings needed for your retirement objective.
⚙️ How It Works
This computes required monthly contribution to reach a target future value from current savings and expected return.
The Formula
Monthly PMT = (FV − PV × (1+r)ⁿ) × r ÷ [(1+r)ⁿ − 1]
| FV | Target future value (retirement nest-egg goal) |
| PV | Current savings balance |
| r | Monthly return rate = Annual rate ÷ 12 ÷ 100 |
| n | Number of months until retirement |
💡Starting early is the most powerful lever. Contributing $400/mo at 7% for 30 years yields the same result as $1,400+/mo over just 15 years.
Quick Reference
| Goal | Current $0, 7%, 30yr | Current $50k, 7%, 30yr | Current $100k, 7%, 20yr |
|---|---|---|---|
| $500k | $409/mo | $191/mo | $706/mo |
| $1M | $817/mo | $599/mo | $1,412/mo |
| $1.5M | $1,226/mo | $1,008/mo | $2,118/mo |
| $2M | $1,634/mo | $1,416/mo | $2,824/mo |
Practical Tips
💡 Revisit assumptions annually.
💡 Use multiple return assumptions for conservative planning.
Frequently Asked Questions
❓ Why can required contribution be zero?
Current savings plus growth may already meet your target.
❓ Is return guaranteed?
No, market return is uncertain and this is a projection.