Child Savings Calculator

Saving for a child takes decades. 50,000 by age 18 (roughly enough for university living costs or a first-car deposit) requires meaningful monthly contributions starting young. This calculator works out exactly how much needs to go in each month, given your target, timeline, and expected return.

Key insight: starting early matters more than contributing more. 50 a month from birth compounds to roughly 19,000 by 18 at 7%. Starting at age 10 and saving 200 a month produces only 23,000 - despite contributing nearly triple. Time beats amount in long horizons.

Most parents use junior tax-advantaged account (9,000 annual contribution limit) for tax-free growth. The tool doesn't assume account type - just projects the math. Whatever account you choose, the required monthly contribution stays the same; the tax treatment affects how much stays invested vs goes to tax. Choose a tax-sheltered account where possible.

Run it with sensible defaults

Using target amount of 50,000, child current age of 0, target age of 18, current child savings of 0, the calculation works out to 116.08. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Target Amount, Child Current Age, Target Age, Current Child Savings, and Expected Annual Return — do not pull with equal force. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

How the math works

Years = target age - current age. Future value of existing savings = current × (1+r/12)^(months). Required monthly contribution uses standard annuity formula to cover any shortfall.

Turning the result into a plan

A projection is just a starting point. The real work is setting the monthly amount aside automatically so the saving happens before you can spend it. Most people who hit savings goals set up a standing order on payday; most who miss them rely on willpower at month-end.

What this doesn't capture

The calculation assumes a steady savings rate and a stable interest rate. Real saving journeys include emergencies, windfalls, and rate changes — especially in easy-access products. The figure is a direction of travel, not a guarantee.