Travel Saving Plan

Enter the trip budget, what you already have and how many months are left; the calculator returns the monthly amount to set aside and how much interest will help.

How the calculation works

The math is the future value of an annuity. Money you have already saved grows with monthly compounding to saved × (1 + i)^n, where i is the monthly rate (annual rate ÷ 12) and n the number of months. The remaining gap is covered by equal deposits made at the end of each month, which also earn interest: deposit = (goal − saved × (1 + i)^n) × i / ((1 + i)^n − 1). With a 0% rate, the gap is simply divided by the months.

Inputs: trip cost, amount already saved, months until the trip (1–120) and return on savings in % per year — for example the APY of a high-yield savings account (the calculator treats it as a nominal rate compounded monthly). Results: monthly deposit, total you will set aside, interest earned and amount still to save. If your current savings already reach the goal, it says so.

Interest earned is the goal minus your own money (starting balance plus deposits), so it includes interest on both.

Worked example

A $5,000 trip, $1,000 already saved, 10 months to go, savings earning 4% a year. The calculator asks for about $390.70 a month. You will deposit about $3,907 in total, and interest adds roughly $93. At 0% you would need $400 a month.

Things to keep in mind

• Budget for the whole trip: flights, lodging, insurance, visas, local transport, activities and a 10–15% cushion for price changes.
• Airfares and hotel rates move; revisit the plan every couple of months and adjust the deposit.
• Interest in a savings account is taxable income in the US; for short horizons and small balances the effect is minor.
• Automate a transfer on payday into a separate savings bucket so trip money does not get spent.