How to Calculate Savings Goal in Singapore: A Step-by-Step Guide
Finds how much to set aside each month to hit a target.
Interest rates, instalments and returns compound over years, so a small difference in rate or tenure turns into thousands of dollars. Working the numbers out yourself makes it easier to compare bank offers, avoid expensive debt and plan savings goals.
What you need
- Savings target (S$)
- Expected return (% a year)
- Years to reach it
Step by step
- Enter the savings target (S$).
- Enter the expected return (% a year).
- Enter the years to reach it.
- The results update as you type, or press Calculate.
- Read the monthly saving needed first, then the supporting figures below it.
The formula
Monthly = target × r ÷ ((1 + r)^n − 1).
Worked example
For example, with these inputs:
- Savings target (S$): 50,000
- Expected return (% a year): 3
- Years to reach it: 5
the calculator returns:
- Monthly saving needed: S$773.43
- Total you put in: S$46,406.07
A second example
Now change the inputs to:
- Savings target (S$): 62,500
- Expected return (% a year): 3
- Years to reach it: 5
the calculator returns:
- Monthly saving needed: S$966.79
- Total you put in: S$58,007.59
Practical tips
- Keep three to six months of expenses in an easy-access account before investing aggressively.
- Factor in inflation when you plan for goals that are many years away.
- Compare loans by effective interest rate, not flat rate; the EIR is roughly double the flat rate.
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
Background
An emergency fund of three to six months of essential expenses protects you from having to borrow at high rates when something unexpected happens. Once that buffer is in place, extra savings can go towards longer-term goals and investments.
Cars in Singapore carry costs found almost nowhere else, including the Certificate of Entitlement and the Additional Registration Fee. Loans are capped at 60% or 70% of the price depending on the car's Open Market Value, and the maximum tenure is seven years.
Interest in Singapore is quoted in several ways. Mortgages and savings accounts use effective annual rates, while car loans and many personal loans are advertised at flat rates that look much lower than their true cost. Banks must disclose the effective interest rate, and comparing on that basis gives a fair picture.
Related calculations
- Additional Registration Fee (ARF) Calculator: Calculates the tiered ARF for cars registered in Singapore.
- Car Depreciation Calculator: Works out the yearly depreciation buyers in Singapore use to compare used cars.
- Loan Calculator: Calculates repayments for an amortising loan.
- Personal Loan Calculator (Flat Rate): Singapore banks advertise personal loans at flat rates.
Want to skip the arithmetic? The free Savings Goal Calculator does all of this instantly and updates as you type.
Run your own numbers: Savings Goal Calculator