Par

How much do I need to save each month?

Put the goal in FV and solve for the payment.

Problem

You want $100,000 in 15 years and expect to earn 5% a year. How much should you save each month?

Keystrokes

  1. fFINx≷y
    0.00

    Start clean.

  2. 15g12×n
    180.00

    180 monthly deposits.

  3. 5g12÷i
    0.42

    Monthly rate.

  4. 100000FV
    100,000.00

    The amount you want at the end, positive because you receive it.

  5. PMT
    −374.13

    The monthly saving needed.

Answer

Save $374.13 a month.

Why it works

FV is money you take out at the end, so it’s positive. The payments that build it are money you put in, so PMT comes out negative.

If you’ve already saved some

Key what you have as a negative PV, for example 15000CHSPV, and press PMT again. The monthly amount drops because your existing savings grow too.

Questions

What if I can only save a fixed amount?

Store it in PMT and solve for n instead, to see how long the goal will take.

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