## Financial Milestone Calculator

The Financial Milestone Calculator is a tool designed to help you plan and track your savings towards specific financial goals.

By inputting your current savings, target savings goal, monthly contributions, annual return on investment (ROI), and the time horizon in months, you can determine how much your savings will grow over time and how long it will take to reach your financial milestones.

**Formula**

**Future Value of Current Savings:**Future Value of Current Savings = Current Savings * (1 + ROI) ^ (Time Horizon / 12)**Future Value of Monthly Contributions:**Future Value of Monthly Contributions = Monthly Contribution * (((1 + ROI / 12) ^ Time Horizon - 1) / (ROI / 12))**Total Future Value:**Total Future Value = Future Value of Current Savings + Future Value of Monthly Contributions**Months Needed to Reach Savings Goal:**Months Needed = log((Savings Goal - Current Savings * (1 + ROI) ^ (Months / 12)) / Monthly Contribution) / log(1 + ROI / 12)

**Step-by-Step Guide**

**Calculate the Future Value of Current Savings:**Example: With $50,000 in current savings, a 5% annual ROI, and a 24-month horizon, the future value of current savings is: 50,000 * (1 + 0.05) ^ (24 / 12) = 50,000 * (1 + 0.05) ^ 2 = 55,125**Calculate the Future Value of Monthly Contributions:**Example: With a monthly contribution of $1,000, a 5% annual ROI, and a 24-month horizon: 1,000 * (((1 + 0.05 / 12) ^ 24 - 1) / (0.05 / 12)) = 1,000 * 24.78 = 24,780**Add the Future Values to Get the Total Future Value:**Example: 55,125 + 24,780 = 79,905**Determine the Months Needed to Reach Your Savings Goal:**Example: To reach a $100,000 goal with the above parameters: Months Needed = log((100,000 - 50,000 * (1 + 0.05) ^ (24 / 12)) / 1,000) / log(1 + 0.05 / 12) = 24

**Facts**

**Current Savings**: The initial amount of money saved.

**Savings Goal**: The target amount to save for a specific financial milestone.

**Monthly Contribution**: The regular amount added to savings each month.

**Annual ROI**: The percentage return expected from investments each year.

**Time Horizon**: The number of months planned to reach the savings goal.

**FAQ**

**How can I use the Financial Milestone Calculator?**

Input your current savings, desired savings goal, monthly contribution, annual ROI, and the time horizon in months. The calculator will compute how much your savings will grow and how long it will take to achieve your goal.

**What if my investment ROI changes?**

If your ROI changes, update the ROI value in the calculator to see how it impacts your future savings and the time needed to reach your goal.

**Can I use this calculator for different types of financial goals?**

Yes, this calculator can be used for various financial goals such as saving for a down payment, retirement, or any other milestone.

**What happens if I don’t reach my savings goal in the planned time?**

You may need to increase your monthly contributions, extend your time horizon, or adjust your savings goal to accommodate any shortfall.