Savings represents a general financial objective that you want to achieve, like buying a car, or a house, or a vacation.
Specify the target amount, and the accounts that you keep the money in.
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.
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.
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.
|PV||Present Value||Current Savings|
|PMT||Payment per period||
|RATE||Rate of return||
|NPER||Number of periods||
Out of the 5 variables, if you know any 4, the 5th can be calculated by solving the equation. You can refer the blog post for more details.