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How to work out the monthly savings to reach a goal in Excel and Google Sheets

Topic:Finance basics
Excel & Google Sheets
=PMT(A2/12,B2*12,0,-C2)
✓

Verified example

Computed by a real spreadsheet engine on the sample data below.

Annual RateYearsGoalMonthly Savings
0.0510100000
0.03520000
0.0720500000
0.04315000

=PMT(A2/12,B2*12,0,-C2)→643.9884857241

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Step by step

  1. 1Column A = Annual Interest Rate (e.g., 0.05 for 5%), Column B = Years to Goal, Column C = Goal Amount.
  2. 2In D2 enter =PMT(A2/12,B2*12,0,-C2).
  3. 3PMT's arguments: rate per period, number of periods, present value (0 = starting from scratch), future value (negative because it's money going out).
  4. 4The result is positive — the amount to deposit each month.

Tips

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Frequently asked

Why is the result negative and how do I fix it?

PMT returns a negative number to represent an outflow. Negate the result by prefixing with a minus sign: =-PMT(A2/12,B2*12,0,-C2).

What if I want to contribute at the START of each period (annuity due)?

Add 1 as the final argument: =PMT(A2/12,B2*12,0,-C2,1). This gives a slightly lower required payment because deposits earn interest one period longer.

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Formulas used

PMTFVPV

Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.

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