Quick answer: To grow 10,000 into 100,000 in 5 years at 4% a year, save 1,324.15 a month; saving 500 a month instead gives 45,359.46.
How it's calculated
With monthly compounding at i = annual rate ÷ 12 over n months, the saving needed is d = (G − S(1 + i)^n)·i ÷ ((1 + i)^n − 1), where G is the goal and S what you have now. The end balance of a fixed saving is B = S(1 + i)^n + d((1 + i)^n − 1)/i.
Deposits are made at the end of each month. With a 0% rate the saving is simply (goal − savings) ÷ months, shown in the last tile for comparison.
For an emergency fund, a common aim is three to six months of essential costs. To split your income, try the 50/30/20 budget calculator; for longer goals with investing, use the investment calculator.
Worked examples
- Goal 100,000 in 5 years, 10,000 saved, 4%: d = 1,324.15 a month
- 10,000 saved + 500 a month, 4%, 5 years: B = 45,359.46
Frequently asked questions
What rate should I enter?
The rate your savings account, deposit or sukuk fund pays. In Saudi Arabia and the UAE savings rates broadly follow the central bank's policy rate.
What if I already have enough?
If your current savings grow to the goal on their own by the date, the calculator shows 0 and tells you.
Should I save before paying off debt?
Keep a small emergency fund, then repay debt that costs more than your savings earn; the saving on interest is usually larger than the return.
Can I use a profit rate from an Islamic account?
Yes. Enter the expected profit rate. Actual profit can vary, so treat the result as an estimate.
How do I reach my goal sooner?
Save more each month, or add one-off amounts when you can. Try a shorter time to see the monthly saving it needs.
Should I allow for inflation in my goal?
For long-term goals, yes. Use the inflation calculator to see what your goal will cost by then, and enter that figure.