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How to work out the monthly savings to reach a goal in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=PMT(A2/12,B2*12,0,-C2)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Annual Rate | Years | Goal | Monthly Savings |
| 0.05 | 10 | 100000 | |
| 0.03 | 5 | 20000 | |
| 0.07 | 20 | 500000 | |
| 0.04 | 3 | 15000 |
=PMT(A2/12,B2*12,0,-C2)→643.9884857241
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Step by step
- 1Column A = Annual Interest Rate (e.g., 0.05 for 5%), Column B = Years to Goal, Column C = Goal Amount.
- 2In D2 enter =PMT(A2/12,B2*12,0,-C2).
- 3PMT's arguments: rate per period, number of periods, present value (0 = starting from scratch), future value (negative because it's money going out).
- 4The result is positive — the amount to deposit each month.
Tips
- If you already have some savings, put the current balance as the PV argument (negative): =PMT(A2/12,B2*12,-CurrentSavings,-GoalAmount).
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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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