Smart Living Finds — Master Tools Index

AI Required Monthly Contribution Calculator

Use this tool to solve for the most actionable number in your financial plan: the **monthly contribution** required to hit your future savings goal. It automatically adjusts your target for inflation and subtracts the growth of your current savings.

Current Savings / Portfolio Value ($)

$

Future Target Goal (Today's $)

$

Expected Annual Investment Return (%)

%

Expected Annual Inflation Rate (%)

%

**Years Until Target Goal** 20 Years

Adjust time to see its instant impact on your monthly requirement.

Required Monthly Contribution

$0

Inflated Target Goal: $0

Future Value from Current Savings: $0

---

The Calculation: Solving for Payment (PMT) in TVM

To find the required **Monthly Contribution** (Payment or $PMT$), we must isolate the contribution component of the Time Value of Money (TVM) equation.

Three-Step Mathematical Breakdown

The final required contribution must satisfy the amount remaining after the initial savings have grown.

1. **Step 1: Calculate the Inflated Target Goal ($FV_{inflated}$) at year $N$:**

$$FV_{inflated} = FV_{today} (1 + I_{annual})^N$$

2. **Step 2: Calculate the Future Value of Current Savings ($FV_{PV}$):**

$$FV_{PV} = PV (1 + R_{monthly})^{N_{months}}$$

3. **Step 3: Solve for the Required Monthly Contribution ($PMT$):**

The required monthly contribution is the target annuity needed ($FV_{Annuity}$) divided by the Annuity Future Value Factor ($FVA$).

$$PMT = \frac{FV_{inflated} - FV_{PV}}{\left[ \frac{(1+r)^n - 1}{r} \right] (1+r)}$$

Where $r$ is the monthly rate ($R_{annual}/12$) and $n$ is the total number of months. The $(1+r)$ at the end accounts for contributions made at the *beginning* of the month.

Actionable Finance: Closing the Gap

If your calculated **Required Monthly Contribution** is higher than what you can afford, you have three primary levers to adjust: **Target Goal**, **Time to Goal**, or **Expected Return**. Using the slider to increase the **Years Until Target Goal** is the most powerful tool, as it dramatically lowers the required monthly payment by allowing compound returns more time to work their magic.

🚀 Explore All Smart Living Finds Tools

Don’t stop here — we’ve built a full library of viral, gap‑filling, dollar‑pouring tools. Discover 10,000+ solutions designed to grow your traffic, revenue, and impact.

👉 Visit the Master Tools Index