Money & Pricing Tables
Savings Goal Table: Monthly Deposit Required
Saving for a target is the inverse of a compound interest problem. Most calculators ask what a deposit will grow to; this table answers the question people actually have, which is how much has to go in each month to end up with a specific number. The formula is the sinking fund factor, and it is the reciprocal of the annuity factor — a relationship worth remembering, because mixing the two up is the classic error.
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The shape of the answer surprises people. Saving $50,000 over ten years at 5% needs $322 a month. Over twenty years the same target needs $122 a month, because the money already in the account does more of the work. Over five years it needs $735. Halving the timeline roughly doubles the monthly cost, which is why the deadline matters more than the target.
The last table separates deposits from interest, and it is the one worth reading carefully. At a 7% return over ten years, almost a third of a $50,000 balance is interest — money that arrived without being earned. At 2% it is under 10%. The rate is not a detail; it is the difference between a goal that is reachable on a normal salary and one that is not.
Monthly deposit needed to reach $10,000
| Years | 0% | 1% | 2% | 3% | 4% | 5% | 6% | 7% |
|---|---|---|---|---|---|---|---|---|
| 1 | $833 | $830 | $826 | $822 | $818 | $814 | $811 | $807 |
| 2 | $417 | $413 | $409 | $405 | $401 | $397 | $393 | $389 |
| 3 | $278 | $274 | $270 | $266 | $262 | $258 | $254 | $250 |
| 5 | $167 | $163 | $159 | $155 | $151 | $147 | $143 | $140 |
| 7 | $119 | $115 | $111 | $107 | $103 | $100 | $96 | $93 |
| 10 | $83 | $79 | $75 | $72 | $68 | $64 | $61 | $58 |
| 15 | $56 | $52 | $48 | $44 | $41 | $37 | $34 | $32 |
| 20 | $42 | $38 | $34 | $30 | $27 | $24 | $22 | $19 |
| 25 | $33 | $29 | $26 | $22 | $19 | $17 | $14 | $12 |
Deposits are assumed to be made at the end of each month, with interest compounded monthly. At 0% the deposit is simply $10,000 divided by the number of months.
Monthly deposit needed to reach $25,000
| Years | 0% | 1% | 2% | 3% | 4% | 5% | 6% | 7% |
|---|---|---|---|---|---|---|---|---|
| 1 | $2,083 | $2,074 | $2,064 | $2,055 | $2,045 | $2,036 | $2,027 | $2,017 |
| 2 | $1,042 | $1,032 | $1,022 | $1,012 | $1,002 | $993 | $983 | $973 |
| 3 | $694 | $684 | $674 | $665 | $655 | $645 | $636 | $626 |
| 5 | $417 | $407 | $397 | $387 | $377 | $368 | $358 | $349 |
| 7 | $298 | $287 | $278 | $268 | $258 | $249 | $240 | $231 |
| 10 | $208 | $198 | $188 | $179 | $170 | $161 | $153 | $144 |
| 15 | $139 | $129 | $119 | $110 | $102 | $94 | $86 | $79 |
| 20 | $104 | $94 | $85 | $76 | $68 | $61 | $54 | $48 |
| 25 | $83 | $73 | $64 | $56 | $49 | $42 | $36 | $31 |
Deposits are assumed to be made at the end of each month, with interest compounded monthly. At 0% the deposit is simply $25,000 divided by the number of months.
Monthly deposit needed to reach $50,000
| Years | 0% | 1% | 2% | 3% | 4% | 5% | 6% | 7% |
|---|---|---|---|---|---|---|---|---|
| 1 | $4,167 | $4,148 | $4,129 | $4,110 | $4,091 | $4,072 | $4,053 | $4,035 |
| 2 | $2,083 | $2,063 | $2,044 | $2,024 | $2,005 | $1,985 | $1,966 | $1,947 |
| 3 | $1,389 | $1,369 | $1,349 | $1,329 | $1,310 | $1,290 | $1,271 | $1,252 |
| 5 | $833 | $813 | $793 | $773 | $754 | $735 | $717 | $698 |
| 7 | $595 | $575 | $555 | $536 | $517 | $498 | $480 | $463 |
| 10 | $417 | $396 | $377 | $358 | $340 | $322 | $305 | $289 |
| 15 | $278 | $258 | $238 | $220 | $203 | $187 | $172 | $158 |
| 20 | $208 | $188 | $170 | $152 | $136 | $122 | $108 | $96 |
| 25 | $167 | $147 | $129 | $112 | $97 | $84 | $72 | $62 |
Deposits are assumed to be made at the end of each month, with interest compounded monthly. At 0% the deposit is simply $50,000 divided by the number of months.
Monthly deposit needed to reach $100,000
| Years | 0% | 1% | 2% | 3% | 4% | 5% | 6% | 7% |
|---|---|---|---|---|---|---|---|---|
| 1 | $8,333 | $8,295 | $8,257 | $8,219 | $8,182 | $8,144 | $8,107 | $8,069 |
| 2 | $4,167 | $4,127 | $4,087 | $4,048 | $4,009 | $3,970 | $3,932 | $3,894 |
| 3 | $2,778 | $2,737 | $2,698 | $2,658 | $2,619 | $2,580 | $2,542 | $2,504 |
| 5 | $1,667 | $1,626 | $1,586 | $1,547 | $1,508 | $1,470 | $1,433 | $1,397 |
| 7 | $1,190 | $1,150 | $1,110 | $1,071 | $1,034 | $997 | $961 | $926 |
| 10 | $833 | $793 | $753 | $716 | $679 | $644 | $610 | $578 |
| 15 | $556 | $515 | $477 | $441 | $406 | $374 | $344 | $315 |
| 20 | $417 | $377 | $339 | $305 | $273 | $243 | $216 | $192 |
| 25 | $333 | $294 | $257 | $224 | $195 | $168 | $144 | $123 |
Deposits are assumed to be made at the end of each month, with interest compounded monthly. At 0% the deposit is simply $100,000 divided by the number of months.
Total deposited versus interest earned on the way to $50,000 over 10 years
| Annual return | Monthly deposit | Total deposited | Interest earned | Interest share |
|---|---|---|---|---|
| 0% | $416.67 | $50,000 | $0 | 0% |
| 1% | $396.35 | $47,562 | $2,438 | 4.9% |
| 2% | $376.73 | $45,208 | $4,792 | 9.6% |
| 3% | $357.80 | $42,936 | $7,064 | 14.1% |
| 4% | $339.56 | $40,747 | $9,253 | 18.5% |
| 5% | $321.99 | $38,639 | $11,361 | 22.7% |
| 6% | $305.10 | $36,612 | $13,388 | 26.8% |
| 7% | $288.88 | $34,665 | $15,335 | 30.7% |
At 0% every dollar of the $50,000 comes from deposits. At 7% almost a third of the final balance is interest (30.7%), which is the whole argument for starting early rather than saving harder later.
How to Use These Tables
- Pick the target, find your horizon in the left column, and read across to the return you realistically expect. For a high-yield savings account use 4%, for a diversified portfolio 6-7%, for cash under the mattress 0%.
- Sanity-check the result against your budget. If the required deposit exceeds 20% of take-home pay, either the target or the deadline has to move.
- Divide the annual deposit by 12 to check the monthly figure, but remember that monthly compounding at rate/12 gives a slightly different answer than annual compounding — the tables use monthly throughout.
- Use the 0% column as the floor. It is what the goal costs with no investment return at all, and it is the only column that is guaranteed.
- Revisit the table whenever the rate changes. A one-point drop in expected return raises the required deposit by roughly 5% over a ten-year horizon.
Common Questions
Why does the monthly deposit not simply equal the target divided by the months?
Because the money already saved earns interest. Each deposit has less time to compound than the one before it, so the deposits can total less than the target. Only the 0% column equals target ÷ months.
Does the table assume deposits at the start or end of the month?
End of month, which is the ordinary annuity convention and matches how most people are paid. Depositing at the start of each month reduces the required amount by about half a month's interest, roughly 0.4% at a 5% annual rate.
What return should I use?
Be conservative. A savings account pays a real, known rate — use it. An investment portfolio has an expected return but no guarantee, and a 7% assumption over five years is a hope rather than a plan. The 0% column is the only one that cannot disappoint.
Does inflation matter?
Yes, and this table ignores it. $50,000 in ten years buys less than $50,000 today — at 3% inflation, about $37,200 in today's money. Either raise the target by the expected inflation rate or accept that the real goal is smaller.
How do I handle a goal that is several years away with a lump sum already saved?
Subtract the future value of the lump sum from the target first. $20,000 already saved growing at 5% for ten years becomes $32,578, so a $50,000 goal only needs deposits covering the remaining $17,422.
Is it better to save monthly or annually?
Monthly, for two reasons: the money compounds sooner, and it matches the pay cycle so the deposit happens before the spending. An annual deposit at the end of each year requires roughly 5% more per year to reach the same target.
More Money & Pricing Tables
Sources
- Compound interest and saving — tools and guidance — Investor.gov, U.S. Securities and Exchange Commission
- Savings and investment — consumer resources — Consumer Financial Protection Bureau
- Survey of Consumer Finances — household saving behaviour — Board of Governors of the Federal Reserve System
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