Work out the monthly saving needed to hit a goal by your target date.
Monthly saving needed
—
Target amount
—
Current savings grow to
—
Your breakdown
Updates live as you type
Item
Amount
Worked example
Take a goal of N10,000,000 in 5 years, starting with N1,000,000 already saved, expecting a 15% annual return. The N1,000,000 you already hold grows on its own. At 15% a year compounded monthly over 60 months it reaches about N2,107,181, so it covers part of the goal by itself. The remaining gap is N10,000,000 minus N2,107,181, which is about N7,892,819. To accumulate that gap with level monthly contributions earning 15%, you need to save about N89,109 a month. If you turn on the inflation option, the goal is first uplifted by 23% a year so it keeps its purchasing power, which raises the target and therefore the monthly amount.
Item
Amount (NGN)
Target amount
10,000,000
Current savings grow to
2,107,181
Gap to fund with contributions
7,892,819
Monthly saving needed
89,109
How it is calculated
The calculator first grows your current savings to the target date, compounding at the expected return divided by twelve over the number of months. It subtracts that grown figure from the goal to find the gap your contributions must fill. The monthly contribution to reach that gap comes from the future value of an annuity formula, rearranged to solve for the payment: the gap times the monthly rate, divided by the quantity one plus the monthly rate raised to the number of months, minus one. If your existing savings already grow past the goal, the required contribution is zero. If you choose to inflate the goal, it is multiplied by one plus the inflation rate raised to the number of years before any of this, so the target keeps its real value. With high Nigerian inflation, inflating the goal is the more honest setting, because a fixed naira target shrinks in purchasing power as the years pass.
Frequently asked questions
How much should I save each month to reach my goal?
The monthly amount depends on your goal, how much you already have, the return your savings earn, and how long you have. This calculator grows your current savings at the expected return, then works out the level monthly contribution needed to close the remaining gap by your target date. With high Nigerian inflation, you can also inflate the goal so the target keeps its purchasing power.
Should I use the inflation uplift option for naira savings goals?
Yes, in most cases. Nigerian inflation has run at around 23% in recent years, meaning a fixed naira target loses significant purchasing power over a multi-year savings horizon. If your goal is to afford a specific item or experience in the future, inflating the target gives you a more honest monthly saving figure. If your goal is a fixed naira amount regardless of purchasing power, leave the option off.
What return rate is realistic for naira savings in Nigeria?
Money market and fixed-deposit accounts offered by Nigerian banks have yielded between 12% and 20% in recent periods, reflecting the elevated CBN monetary policy rate. Treasury bills issued by the Central Bank have also offered returns in that range. Equity investments carry higher potential but also higher risk and are less suitable for short-horizon goals. Use a conservative figure for goals you cannot afford to miss.
What happens if my current savings already cover the goal?
If your current savings, grown at the expected return over the chosen period, already reach or exceed the target, the required monthly contribution is zero. The calculator will show this and display how much your existing savings grow to by the target date. You do not need to add anything further, though you may still choose to save more if your goal has an inflation uplift that makes the target a moving figure.