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.