Capital Requirement Calculator
Calculate how much you need to save each month to reach your financial goal – including the compound interest effect.
- Updated
Tap to type or drag sideways
You can also drag the handle on the chart
Tap to type or drag sideways
More detailsnominal goal · before tax
Required monthly savings rate
per month for 10 years
€500.93
€500.93To reach €100,000 in 10 years, save €500.93 per month. Interest contributes €29,889.
- 6 yrHalfway there
- 10 yrGoal €100,000
- 6 yrHalfway there
- 10 yrGoal €100,000
- Target amount
- €100,000.00
- ShortfallGoal minus existing capital with interest
- €82,091.52
- Total contributions
- €70,111.19
- Interest earned
- + €29,888.81
- Interest share
- 29.9%
Wealth accumulation
- Contributions€70,11170%
- Interest€29,88930%
What you can do
Save for 15 years instead−€239.48
The savings rate drops to €261.45 per month.
How this was calculated
Higher returns lower the required savings rate, but come with more risk.
- 0-2%: savings and time deposit accounts (very safe)
- 3-5%: bond ETFs, mixed funds (conservative)
- 5-7%: world ETFs like MSCI World (long-term)
- 7-10%: equity-heavy portfolios (higher risk)
- Automate your savings rate with a standing order
- Take advantage of compound interest by saving early
- Higher returns bring more risk – diversify
- Adjust your time horizon if the savings rate is too high
The calculations are based on a constant return. In reality, returns fluctuate. The longer the time horizon, the more likely the assumed average returns become.
RZ-26 · headon.pro
Calculating your savings rate: how to reach your goal
The required monthly savings rate depends on three factors: the target amount, the time horizon and the expected return. The more time you have and the higher the return, the less you need to set aside each month.
The compound interest effect is your best friend here: over long periods, the interest earned can even exceed the sum of your own contributions.
Typical savings goals
- Down payment for a home
- 20-30% of the purchase price. For a €400,000 home, that is €80,000-120,000 plus closing costs.
- Emergency fund
- 3-6 months of expenses in an easily accessible savings account for unforeseen costs.
- New car
- Paying in cash avoids financing costs. Typical range: €15,000-40,000 for a new car.
- Sabbatical
- 6-12 months of salary for a career break without financial worries.
Calculation examples
- Target amount
- €100,000
- Time horizon
- 10 years
- Expected return
- 6% p.a.
- Monthly savings rate
- €610
- Your total contributions
- €73,225
- Interest earned
- €26,775
- Target amount
- €100,000
- Time horizon
- 20 years
- Expected return
- 6% p.a.
- Monthly savings rate
- €216
- Your total contributions
- €51,943
- Interest earned
- €48,057
Return: more growth, lower savings rate
The rate of return has a huge impact on the required savings rate. At a higher return, your money works harder for you. But: higher returns also mean higher risk.
Savings rate for €100,000 in 10 years
- 0% return (savings account)€833/month required
- 3% return (bonds)€716/month required
- 5% return (mixed)€644/month required
- 7% return (equity ETF)€578/month required
- 10% return (high risk)€488/month required
Frequently asked questions about capital requirement
Everything you need to know about calculating your savings rate
How do I calculate my required savings rate?
The savings rate depends on three factors: target amount, time horizon and expected return. Our calculator uses the savings plan formula to determine the exact monthly rate, including the compound interest effect.
What is the compound interest effect?
With compound interest, not only your contributions earn interest, but also the interest already received. Over long periods, the interest share can even exceed the contribution share – that is the power of compound interest.
What return can I realistically expect?
Savings accounts: ~0-2%, bonds: ~3-4%, world ETFs (MSCI World): historically ~7% p.a. The higher the return, the higher the risk. For long-term goals (10+ years), equity ETFs are often a sensible choice.
How much of a down payment do I need for a house?
Banks recommend 20-30% of the purchase price as a down payment. For a €400,000 purchase price, that is €80,000-120,000. In addition, you should be able to cover the closing costs (~10-15%).
How large should my emergency fund be?
A recommended size is 3-6 months of expenses. At €2,000 in monthly expenses, that is €6,000-12,000. If you are self-employed or in an uncertain job situation, aim for 6-12 months of expenses instead.
Should I save for longer or save more per month?
The longer your time horizon, the more you benefit from compound interest and the lower the required savings rate. For a 10-year goal of €100,000 at a 6% return: ~€610/month. Over 20 years: only ~€216/month.