Make Your Wish Come True Calculator

Almost anything is possible; you only need a solid plan and a little bit of self-discipline. While we cannot help you with discipline and self-control, we could help you prepare a solid plan for reaching your goals.

With our calculator, you may:

• Find out how much you should save monthly to accumulate enough money to achieve your dream.
• Calculate how long it will take to save the required amount. 
• Test different approaches to reach your goal.

Saving money is easier than you think!

If you are starting to save for an ambitious goal, it may seem like an impossible task. However, several factors work in your favor. 

Most importantly, the compound interest is your greatest ally. Over time it could let your capital grow to astonishing amounts. It allows your money to achieve a snowball effect, and interest earned previously increases the base for the future interest calculation. If you wish to learn more about that topic, visit our compound interest calculator. 

Systematic savings of even small amounts could cumulate to a large sum over time. Saving $200 per month may not seem like a lot of money, but it could give you $2,400 plus interest over twelve months and allow you to go on a great holiday every year. 

Another underestimated factor is the growth of your income over time which allows you to increase your monthly savings. Even if you are not receiving a pay rise each year, your salary will grow in the long run due to the increase in your skills and experience. Investing in yourself has the highest return on investment. 

The functionality of this calculator

Our tool allows you to prepare your saving plan by testing different approaches. Play with various settings in the form and see how it will impact your final saving outcome.

The list of fields:

• Cost of your wish - The total cost of your desire. 
• Current amount - If you have already started saving, put your current savings balance here. It will be used as a base for the further accrual of interest. 
• Monthly savings - The amount of money you plan to save every month.
• Annual increase - This field defines the yearly growth of your monthly savings. The calculator will increase the monthly savings amount each year by the percentage value from this field.
• Interest rate - The average annual interest rate you expect from your savings portfolio. 
• Compounding - Determines how often the interest will be added to be savings balance. It impacts the effective interest rate.

The limitations of this calculator

This tool is meant to prepare the savings plan for mundane whims, for example, a new car, a family vacation, or a hobby. 

It doesn't calculate the impact of inflation since it focuses on short-term goals.

If you aim for ambitious long-term goals, visit our general savings goal calculator. Use our retirement savings goal calculator if you plan to save for early retirement.

Authors

Created by Lucas Krysiak on 2022-06-11 15:21:45 | Last review by Mike Kozminsky on 2022-09-27 13:46:33