Target Purchase Savings Timeline Calculator

How to calculate your savings timeline?

Goal-based saving identifies the gap between your target price and your current assets to find a monthly path forward.

Formula: Months = (Target - Current) / Monthly Contribution

Using the savings calculator: an example

Example: A $20,000 car with $5,000 saved and $500 monthly contributions.

Step-by-step calculation:

• Calculate the $15,000 remaining gap
• Divide by the $500 monthly contribution
• Reach the goal in 30 months (2.5 years)

Frequently Asked Questions

Does consistency matter?

Yes, even small monthly variations can shift your target date by several months over long periods.

Should I account for inflation?

For long-term goals over 3 years, it is wise to increase your target price by 2-3% annually.

What if my contribution changes?

Recalculate your timeline whenever your income or expenses change to stay on track.