Loan & Finance · Savings
Savings Goal Calculator
Work out how much to put aside each month to hit a target — or what your current saving will grow to.
Step by step
How this is worked out
Pick a direction
Solve for the monthly saving, or project what you already save.
Set your horizon
How long you plan to keep saving.
Enter a realistic rate
What your savings vehicle actually credits.
Count what you already have
Existing savings grow too, shrinking the monthly gap.
Reading the result
The target is in today's rupees
A goal set at a fixed amount quietly assumes prices stay where they are. Over a few years in Pakistan that assumption does not hold well. Saving for something that costs Rs 3,000,000 today means aiming at whatever that same thing costs on the day you buy it, which is a larger number.
The practical way to handle it without complicating the arithmetic: revisit the target annually and raise it in line with what the thing actually costs now, rather than setting it once and trusting it.
The return you enter should be the one you keep
Profit on most savings products is subject to withholding, and where Zakat applies it comes off the balance rather than off the profit. A gross rate produces an optimistic schedule. Entering a net figure gives a target date you can rely on.
Consistency beats size
A modest monthly amount that never misses outperforms a larger one that stops for months at a time, because compounding rewards the periods the money is actually invested. Setting the instruction to execute the day salary arrives, rather than saving whatever is left at month end, is what makes that work in practice.
Where this stops
This assumes a steady rate and a steady contribution. Real returns vary, certificate rates are fixed at issue rather than for all time, and life interrupts contributions. Treat the date it gives you as a plan to check against, not a promise.
FAQs
Savings goal FAQs
How does the calculation work?
Monthly deposits are compounded monthly at the rate you enter, and any existing savings are grown forward over the same period. In target mode the calculator solves for the deposit that closes the remaining gap; in projection mode it grows the deposit you already make.
What rate should I use?
Whatever your savings vehicle actually credits — a bank savings or term deposit rate, an Islamic profit-sharing rate, or a conservative assumption for a mutual fund. Rates change, and investment returns are not guaranteed, so try a low and a high figure rather than trusting one number.
Does this account for inflation?
No — the figures are nominal. In Pakistan inflation has frequently run high enough to erode a large part of a nominal return, so a target set today may buy less by the time you reach it. One approach is to enter a rate net of expected inflation to see the result in today's purchasing power.
Is the profit taxable?
Profit on bank deposits and savings is generally subject to withholding tax under Section 151 — see the Profit on Debt Tax Calculator. This calculator shows gross growth, so your net position will be lower once tax is deducted.
Do I owe zakat on the balance?
Savings are zakatable wealth. Once your total zakatable wealth is at or above nisab, zakat is due annually at 2.5% — which also slows accumulation slightly compared with the gross figure shown here.
Related tools
Tax on the profit you earn?
Bank profit is withheld at source under Section 151.
Open Profit on Debt Tax Calculator