To save KSh 500,000 in 24 months at 10.0%, put away KSh 19,186 a month.
Where to keep money for a goal
For goals under three years, a money market fund is the usual choice: you can withdraw in two to three days and yields are well above a savings account. Interest is taxed at 15%, which this calculator already accounts for. For longer goals, a mix of Treasury bonds or a SACCO can earn more.
Rates used in this calculator
Withholding tax on investment interest
Money market funds
15% WHT on interest
Treasury bills
15% WHT on the discount
Treasury bonds under 10 years
15% WHT
Treasury bonds of 10+ years
10% WHT
Infrastructure bonds
Tax-free
Bank fixed deposits
15% WHT
Frequently asked questions
How much should I save each month?
A common rule is 20% of take-home pay, with the first goal being an emergency fund of three to six months of expenses.
What return should I assume?
Use the current yield of the money market fund you plan to use, minus about one percentage point to stay conservative.