# Savings¶

Savings represents a general financial objective that you want to achieve, like buying a car, or a house, or a vacation.

```
goals:
savings:
- name: House
target: 5000000
icon: fluent-emoji-high-contrast:house-with-garden
accounts:
- Assets:Equity:*
- Assets:Debt:*
```

Specify the target amount, and the accounts that you keep the money in.

### Forecast¶

When you save towards an objective, you will have a target date in mind. In the below config, you are specifying the target date and rate. Paisa will calculate the monthly contribution required to achieve the goal.

```
goals:
savings:
- name: House
target: 5000000
target_date: 2030-05-01
rate: 10
icon: fluent-emoji-high-contrast:house-with-garden
accounts:
- Assets:Equity:*
- Assets:Debt:*
```

If on the other hand, you know how much you can afford to save every month, but want to know when the goal will be achieved, you can specify the payment per period and the rate. Paisa will calculate the target date.

```
goals:
savings:
- name: House
target: 5000000
payment_per_period: 50000
rate: 10
icon: fluent-emoji-high-contrast:house-with-garden
accounts:
- Assets:Equity:*
- Assets:Debt:*
```

### Math¶

This section will give some rough idea of how the calculations are done. You can skip this section if you are not interested in the math.

$FV + PV \times (1+RATE)^{NPER} + PMT \times \frac{(1+RATE)^{NPER} - 1}{RATE} =0$Where

Variable | Description | Paisa |
---|---|---|

FV | Future Value | `target` |

PV | Present Value | Current Savings |

PMT | Payment per period | `payment_per_period` / Monthly Investment needed |

RATE | Rate of return | `rate` |

NPER | Number of periods | `target_date` |

Out of the 5 variables, if you know any 4, the 5^{th} can be calculated by
solving the equation. You can refer the blog post for more details.