The monthly deposit needed to hit a savings goal comes from inverting the compound-interest formula: subtract the projected growth of any starting amount from the goal, then divide the remainder by the accumulation factor of monthly deposits over the period. For example, reaching 500,000 ₪ in 10 years at a 7% annual return from zero requires about 2,889 ₪ per month.
How is it calculated?
The calculator converts the annual return to a monthly rate (return ÷ 12) and works backwards: it first grows the starting amount at compound interest over all the months of the period and subtracts the result from the goal; it then divides what remains by the accumulation factor of a fixed monthly deposit — what every shekel deposited grows to by the end of the period. The result is the fixed monthly deposit that lands exactly on the goal.
Example: a goal of 500,000 ₪ in 10 years at a 7% annual return from zero requires about 2,889 ₪ per month — about 347,000 ₪ in total deposits, with the remaining roughly 153,000 ₪ coming from returns. The earlier you start, the less you need: the same goal over 15 years takes only about 1,577 ₪ per month, and a 100,000 ₪ starting amount grows to about 201,000 ₪, cutting the required deposit to about 1,728 ₪ per month. The calculation assumes a fixed return with monthly compounding; actual returns vary from year to year and are not guaranteed.
Frequently asked questions
How much do I need to save per month to reach 500,000 ₪?
It depends on the timeframe and return: in 10 years at a 7% annual return you need about 2,889 ₪ per month, and in 15 years only about 1,577 ₪ per month. The longer the period, the more of the goal comes from compound interest instead of deposits.
How does a starting amount affect the required deposit?
The starting amount compounds over the whole period and covers part of the goal. For example, 100,000 ₪ at a 7% return grows to about 201,000 ₪ in 10 years — cutting the deposit needed for a 500,000 ₪ goal from about 2,889 ₪ to about 1,728 ₪ per month. If the starting amount is projected to grow past the goal, no deposit is needed at all.
Is the return in the calculator guaranteed?
No. The return you enter is an illustrative assumption only, and the calculation treats it as fixed for the whole period with monthly compounding. Actual market returns vary from year to year, and past returns do not guarantee future returns.
This calculation is a general estimate for illustration only. It does not constitute tax, pension, or investment advice, nor a substitute for personal advice from a licensed professional, and should not be relied on for decisions.
