Savings Goal Calculator
Set a savings target and see how long it will take to reach it. This calculator shows how your regular contributions plus interest will grow over time, helping you plan for holidays, home deposits, or any goal.
How to Use This Calculator
1. Enter your savings goal – The total amount you want to save.
2. Add current savings – How much you’ve already saved (if any).
3. Set monthly contribution – How much you can save each month.
4. Enter interest rate – The rate your savings account offers.
FAQs
Savings Questions
How much should I save each month?
A common guideline is to save at least 20% of your after-tax income, though this depends on your goals and circumstances. Start with what’s manageable and increase over time. Even small amounts add up with consistent saving.
Should I put savings in a high-interest account?
Yes, high-interest savings accounts can earn 4-5% or more currently, compared to standard accounts earning near zero. However, many require conditions like monthly deposits or limited withdrawals. Compare accounts to find the best fit.
How can I save more money?
Start by tracking your spending to find areas to cut. Set up automatic transfers on payday so you ‘pay yourself first’. Look for ways to reduce fixed costs like insurance, utilities, and subscriptions. Small daily savings (coffee, lunch) add up significantly.
What’s the difference between compound and simple interest?
Simple interest is calculated only on your original deposit. Compound interest is calculated on your deposit plus any interest already earned, meaning your money grows faster over time. Most savings accounts use compound interest.
Should I save or pay off debt first?
Generally, pay off high-interest debt (like credit cards) first, as the interest you’re paying likely exceeds what you’d earn on savings. However, keep a small emergency fund even while paying debt. For low-interest debt, you might do both.