Method
Projected balance = current savings compounded monthly at (annual return / 100 / 12) with the monthly contribution added each month for years x 12 months. Target gap = target balance - projected balance (never below zero). Target met = projected balance >= target.
Compare the projected balance with a target you choose; the tool does not decide what target you should have.
Worked example
| Current savings | $80,000 |
|---|---|
| Monthly contribution | $800 |
| Annual return | 6.5% |
| Years | 25 |
| Target balance | $1,000,000 |
| Projected balance | $1,003,565 |
| Target gap | $0 |
| Target met | Yes |
Assumptions and limits
- Returns are assumed constant and nominal: inflation, taxes, fees and withdrawals are not modelled.
- The result is a projection for planning, not investment advice.
Educational estimate only. It is not financial, tax, legal, or investment advice.