FAQ: Savings Goal Calculator
1. How does this calculator work?
It uses the future value formula to determine monthly contributions needed, factoring in initial amount, time, and interest rate.
2. What interest rate should I use?
Use a realistic rate based on your savings account or investment (e.g., 4-5% for high-yield savings in USA).
3. Can I include an initial amount?
Yes, enter any starting savings to reduce monthly contributions needed.
4. What if my goal is short-term?
For goals under 1 year, use a fraction (e.g., 0.5 for 6 months) or adjust to months if preferred.
5. Does this account for inflation?
No, it assumes constant rates. Adjust your goal amount upward for inflation.
6. Is compounding considered?
Yes, it assumes annual compounding for simplicity, common in US savings accounts.
7. Is my data secure?
Yes, all calculations are performed locally in your browser—no data is stored or sent.