Calculation methodology
The simulator uses the future value formula with uniform contributions (payment series). Each month it calculates interest on the accumulated balance, adds the periodic contribution, and updates the total invested. We also project inflation for the same interval to convert the gross amount into real values.
FV = P × (1 + i)^n + A × ((1 + i)^n - 1) / i
Where P is the initial contribution, A the monthly contribution, i the equivalent monthly rate, and n the number of months.
The calculation happens month by month to allow goals with fractions of a year, negative rates, and inflation adjustments. If you enter a zero rate, the simulator simply adds the contributions and returns the total invested, facilitating savings planning without returns.
Strategies to accelerate goals
- Increase contributions in the first years: the compound interest effect grows over time.
- Reinvest bonuses, tax refunds, and 13th salary as extra contributions.
- Diversify between post-fixed assets (protect against inflation) and pre-fixed (take advantage of falling interest rate cycles).
- Review goals annually and adjust contributions according to income evolution and cost of living.
Goals reference table
Use the table below to visualize how much you need to invest per month to reach classic objectives, assuming an annual return of 9% and 4% inflation. Adjust the values in the calculator to reflect your reality.
| Objective | Goal ($) | Period | Estimated monthly contribution |
|---|---|---|---|
| Emergency fund | $5,000 | 24 months | ≈ $195 |
| Property down payment | $20,000 | 5 years | ≈ $270 |
| Supplementary retirement | $170,000 | 25 years | ≈ $260 |
| International exchange | $13,500 | 4 years | ≈ $210 |
Connect with other calculators
The financial journey involves comparing different products. After simulating the investment, calculate the cost of credit in recurring expenses and visualize savings opportunities with the Simple Interest Calculator. Create a personal goals hub and track everything in our financial calculators section.