Inflation-Adjusted Savings Goal Calculator
Find the future cost of a goal after inflation and the monthly contribution needed to reach it at a given rate of return.
Result
- Goal in today’s dollars$50,000.00
- Future cost (after inflation)$67,195.82
- Current savings grows to$0.00
- Still needed$67,195.82
- Monthly contribution$410.03
- Total contributed$49,203.87
Step-by-step
- Future cost = $50,000.00 × (1+0.03)^10 = $67,195.82.
- You need to save $67,195.82.
- Monthly contribution = $410.03 at 6% return over 120 months.
How to use this calculator
- Enter the goal amount in today’s dollars and the number of years.
- Enter expected inflation and your expected annual return.
- Add any current savings already earmarked for the goal.
- Read the future cost and the monthly contribution needed.
About this calculator
A savings goal you set in today’s dollars will cost more by the time you reach it, because inflation steadily raises prices. This calculator does two things: it inflates your goal to its future cost over your time horizon, and it computes the monthly contribution required to accumulate that amount at your expected rate of return. It also credits any current savings, growing it forward and reducing the monthly amount you still need to set aside. Funding the inflated target — not today’s sticker price — is what keeps a long-term goal on track; ignoring inflation systematically under-saves. The contribution is derived from the future-value-of-an-annuity formula, so it accounts for the compounding growth of each monthly deposit. All figures are pre-tax and assume steady inflation and returns, so revisit the plan as conditions change.
How it works — the formula
Future cost = Target × (1 + inflation)^years
Needed = Future cost − Current × (1 + r/12)^n
Monthly = Needed × (r/12) ÷ ((1 + r/12)^n − 1)Inflation grows the goal; the annuity formula spreads the remaining need into compounding monthly deposits.
Worked examples
- Inputs:
- target=50000, years=10, inflation=3, returnRate=6, current=0
- Output:
- future $67,195.82, ~$410/mo
- Inputs:
- target=50000, years=10, inflation=3, returnRate=6, current=10000
- Output:
- lower monthly (current grows)
- Inputs:
- target=20000, years=5, inflation=2, returnRate=4, current=0
- Output:
- future ~$22,082, ~$333/mo
Limitations
- Constant inflation/return with monthly compounding assumed.
- Pre-tax; account type affects net returns.
- Does not model variable or lump-sum contributions.
Planning projection, not a guarantee of investment results.