Vacation Planning Calculator
A trip paid for from savings is cheaper than one paid on a credit card or personal loan. Enter what the trip would cost today, how many months away it is and what you have saved, and the calculator shows the monthly amount to set aside.
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Calculator and results
A trip costing ₹2,00,000 today could cost about ₹2,07,922 in 8 months at 6% inflation. Setting aside ₹22,871 a month in a recurring deposit or savings account at an assumed 6% return pays for it.
Flights, trains or fuel, at today's fares.
Food, local transport, visas, insurance, shopping.
An assumption. For a foreign trip, add a little for a weaker rupee.
A lower-risk assumption, not a quoted rate. Check your bank's recurring deposit rate for the tenure.
Monthly saving
₹22,871
for 8 months
Trip cost then
₹2,07,922
₹2,00,000 today
Or a lumpsum today
₹1,80,000
one-time, on top of savings
Savings by the trip
₹20,792
grown at 6%
The trip is less than a year away, so the plan assumes a recurring deposit or savings account, not market investments. A bank RD compounds quarterly, so its maturity will differ slightly.
Month by month
| Month | Put in to date | Trip fund |
|---|---|---|
| 1 | ₹42,871 | ₹43,083 |
| 2 | ₹65,742 | ₹66,281 |
| 3 | ₹88,613 | ₹89,595 |
| 4 | ₹1,11,484 | ₹1,13,026 |
| 5 | ₹1,34,355 | ₹1,36,573 |
| 6 | ₹1,57,226 | ₹1,60,239 |
| 7 | ₹1,80,097 | ₹1,84,023 |
| 8 | ₹2,02,968 | ₹2,07,925 |
Saved scenarios stay in this browser only. No sign-up.
Monthly saving
₹22,871
- What it is:
- A monthly savings planner for a holiday in India or abroad.
- What it calculates:
- The trip's cost at the time you travel and the monthly amount, or one-time amount today, that pays for it.
Key Assumptions
- Trip costs rise at the inflation rate you enter.
- Savings earn a constant return; monthly amounts are set aside at the start of each month at the annual return divided by 12.
- Exchange rate changes for a foreign trip are not modelled separately; allow for them in the inflation rate.
- Tax on interest is not deducted.
How does the Vacation Planning Calculator work?
Add up today's cost of travel, stay and everything else: food, local transport, visas, insurance and shopping. The total is grown at the inflation rate you enter for the months until you travel.
Savings already set aside are grown at the expected return and subtracted from that cost.
The monthly amount is solved as money set aside at the start of each month at the return divided by 12, the same convention as our SIP calculator, and rounded up to the next rupee.
For a trip less than 12 months away, the plan assumes a recurring deposit or savings account rather than market investments, because there is no time to recover from a fall. A bank RD compounds quarterly, so its maturity differs slightly from this figure. For 12 months or more the same maths is shown as a SIP; keep the expected return modest either way.
Vacation Planning Calculator formula
Trip cost = (T + S + O) x (1 + f)^(m/12); Monthly saving = (Trip cost - savings x (1 + r)^(m/12)) / ([((1 + i)^m - 1) / i] x (1 + i))
- T, S, O
- = travel, stay and other costs today
- f
- = inflation per year, as a decimal
- m
- = months until the trip
- r
- = expected annual return, as a decimal
- i
- = monthly return = annual return / 12 / 100
Vacation Planning Calculator: worked example
A trip costing ₹2,00,000 today, 8 months away, ₹20,000 already saved
- Trip cost after 6% inflation
- ₹2,07,922
- Savings grown at 6%
- ₹20,792
- Monthly saving needed
- ₹22,871
- Total set aside
- ₹1,82,968
- Or a one-time amount today
- ₹1,80,000
Vacation Planning Calculator: frequently asked questions
Where should I keep money for a holiday?
What return should I assume?
How do I allow for exchange rates on a foreign trip?
Is it better to book on EMI?
Further reading
An FD at 7.5% and PPF at 7.1% are not what they look like. FD interest is taxed at your slab and PPF interest is not.
Comprehensive comparison between Mutual Fund SIPs and Bank Fixed Deposits in India. Compare after-tax returns, volatility, inflation beating, and liquidity.
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Reviewed by Pradipta Ray, MBA (Finance) · Updated