Savings Calculator

Calculate how much you need to save each month to reach your financial goal. Includes interest projection.

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How to calculate your savings goal

Saving money is the first step toward financial stability. Whether you want to build an emergency fund, buy a home or finance a trip, having a clear goal and a monthly savings plan is essential.

This calculator lets you define your goal and timeframe, and it automatically works out how much you need to set aside each month. It also accounts for the interest you will earn if you deposit your savings in an interest-bearing account.

Savings formula with interest

PMT = (FV - PV × (1 + r)^n) × r / ((1 + r)^n - 1)

Where:

  • PMT = Required monthly payment
  • FV = Future value (your savings goal)
  • PV = Present value (your starting balance)
  • r = Monthly interest rate
  • n = Total number of months

Tips for saving in Latin America

Saving in economies with high inflation poses unique challenges. Here are some tips adapted to our reality:

  • Automate your savings: Set up automatic transfers the day you get paid.
  • Look for competitive rates: Compare banks and cooperatives. Cooperatives often offer better rates.
  • Consider fixed-term deposits: CDs (Certificates of Deposit) generally pay more than savings accounts.
  • Protect your savings from inflation: If the interest rate is lower than inflation, your savings lose real value. Consider investment alternatives.
  • Start small: You do not need large amounts. What matters is starting and being consistent.

How much should I have saved for my age?

A general guideline suggests having saved at least the equivalent of:

  • By age 30: 1x your annual salary
  • By age 40: 3x your annual salary
  • By age 50: 6x your annual salary
  • By age 60: 8x your annual salary

These figures are indicative and vary based on the cost of living in your country and your personal goals.

Emergency fund: your first savings goal

Before thinking about long-term goals, set up an emergency fund equivalent to 3-6 months of expenses. This fund protects you against unexpected events such as job loss, medical bills or urgent repairs.

In unstable economies like those in Latin America, having an emergency fund is even more critical. Keep it in a liquid instrument (one you can withdraw quickly) such as a savings account.

Frequently asked questions about saving

Enter your savings goal, your target timeframe, the interest rate your bank offers and your starting balance. The calculator shows how much you need to save each month to reach your goal, including the interest you will earn.

Use the rate your savings account or fixed-term deposit offers. In Latin America, rates range between 3% and 15% per year depending on the country and the type of financial instrument.

Saving means keeping your money in low-risk instruments such as savings accounts or fixed-term deposits. Investing means putting your money into instruments with higher risk and potentially higher returns, such as stocks, bonds or mutual funds.

The general rule is to save at least 20% of your monthly income. However, this depends on your financial situation. Start with what you can and increase gradually. The important thing is to build the habit.

Options include bank savings accounts, fixed-term deposits (CDs), savings and credit cooperatives, and low-risk investment funds. Each country has specific options based on its financial system.