Time to Reach FV Goal
How long to reach a savings goal with periodic deposits.
When to use: Use to find how long monthly or quarterly savings take to reach a goal.
Formula
Variables
| Symbol | Name | Description | Unit |
|---|---|---|---|
| n | Number of Years | Time to reach target | years |
| FV | Future Value | Savings goal | $ |
| PMT | Payment | Periodic savings amount | $ |
| k | Interest Rate | Nominal annual rate | % |
| m | Periods/Year | Deposits per year | integer |
Real-Life Examples
Example 1: Monthly Savings Goal
Save $500/month at 6% monthly compounding. How long to reach $100,000?
Given
Step-by-Step
About 11.58 years of monthly $500 savings to reach $100,000.
Example 2: Quarterly Investment
Invest $2,000/quarter at 8% quarterly. How long to $200,000?
Given
Step-by-Step
About 13.87 years of quarterly investments to reach $200,000.
Frequently Asked Questions
Enter the target amount as FV, monthly savings as PMT, annual rate as k, and 12 for m. The formula tells you how many years of monthly deposits are needed to reach your goal.
Saving monthly reaches goals slightly faster than saving the equivalent annual amount once per year. This is because monthly deposits start earning interest sooner throughout the year, providing a compounding advantage.
You can increase the periodic deposit amount, find a higher return rate, or contribute more frequently. Increasing the deposit is usually the most impactful and controllable factor.