Savings Goal / Sinking Fund — Plan by Date or Budget

Set a goal, choose a date or a monthly budget, and we’ll build a simple plan—100% private in your browser.

Inputs

Results

Required monthly contribution: –
Progress so far:
–
Goal in today’s money (estimate): – (discounted by inflation to the expected date)
Estimates only, not financial advice. Taxes, fees, and market changes aren’t included.

How It Works (Quick Math)

We compound monthly. With monthly return r, months n, starting pot P₀, and monthly contribution PMT:

  • Future value: FV = P₀(1+r)ⁿ + PMT·((1+r)ⁿ−1)/r (if r=0, then FV = P₀ + PMT·n)
  • Solve PMT (plan by date): PMT = (FV − P₀(1+r)ⁿ)·r / ((1+r)ⁿ−1) (if r=0, PMT = (FV − P₀)/n)
  • Solve n (plan by budget): n = ln((PMT + r·FV)/(PMT + r·P₀)) / ln(1+r) (if r=0, n = (FV − P₀)/PMT)
  • Today’s money: divide by (1+i)ʸ with annual inflation i and years y.

How to Plan Your Savings (Clear Steps + Friendly Tips)

A good savings plan turns “someday” expenses into calm, manageable monthly habits. Whether you’re building an emergency fund, saving for a holiday, or creating multiple sinking funds (car insurance, gifts, annual bills), the key is to define a goal, choose a time frame, and automate contributions you can actually stick to.

1) Start with the foundation

  • Emergency fund first: Aim for a small starter buffer (e.g., one month of essentials), then work toward three to six months.
  • Pay high-interest debt: Prioritising repayments can deliver a “risk-free return” larger than most savings accounts.

2) Set SMART goals

Make each savings goal Specific, Measurable, Achievable, Relevant, and Time-bound. Example: “£3,000 for a June holiday next year.”

3) Pick a time frame and contribution

Short-term goals (under 2 years) are usually best kept in cash. Use this tool to plan by date (solves for monthly contribution) or by budget (estimates time). If inflation is a concern for longer goals, the “today’s money” view keeps expectations realistic.

4) Automate and separate

  • Automate transfers: A standing order on payday removes friction.
  • Use separate pots or envelopes: Keep goals distinct so you can see progress.
  • Choose a suitable account: For cash goals, consider competitive rates and access.

5) Make it sustainable

  • Right-size your budget: Small, consistent amounts beat heroic one-offs.
  • Review quarterly: Update the plan if your timeline or income shifts.
  • Expect seasonality: Build sinking funds for predictable spikes.

6) Track progress (and celebrate)

Use the progress bar and live chart to check milestones—25%, 50%, 75%—and keep momentum strong.

Educational note: General information only—this is not financial advice. Consider fees, taxes, and risk tolerance for your accounts or investments.

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