Savings Goal Calculator UK (with Compound Interest)

Savings Goal Calculator

Work out how much to save each month to hit your target — or how long it will take at a set monthly amount. With compound interest at your rate. Get a free PDF savings plan.

£
£
years
+ months
% AER

Get your full savings plan — free PDF

  • Month-by-month and year-by-year growth schedule
  • How much of your pot is deposits vs. interest
  • Personal Savings Allowance & ISA tax check
  • What a higher rate or bigger deposit would do

This calculator is a guide only and not financial advice. It assumes monthly compounding, a constant interest rate and deposits made at the start of each month; real accounts may differ. Rates can change and savings interest may be taxable above your Personal Savings Allowance. Investments can fall as well as rise.

How the savings goal calculator works

Whether you are building an emergency fund, saving for a house deposit or planning a big purchase, this calculator turns a vague goal into a clear plan. It works two ways: tell it how much you want and by when, and it works out the monthly amount you need to save; or tell it how much you can save each month, and it works out how long the goal will take. Either way it factors in compound interest at your account’s rate, so you do not over- or under-save.

Enter your target, anything you have already saved, your timeframe or monthly amount, and the interest rate (AER) on your account. The results update instantly and the free PDF shows a year-by-year growth schedule, how much of your pot is interest, and a Personal Savings Allowance tax check. To reach your goal faster, compare the best regular saver accounts; for goals five or more years away, a Stocks & Shares ISA or a Lifetime ISA (for a first home) may grow your money faster.

Frequently asked questions

How much do I need to save each month to reach my goal?
It depends on your target, how long you have, any starting balance and the interest rate. Enter those four figures and the calculator solves for the exact monthly contribution, accounting for compound interest so you do not over-save.
How does compound interest grow my savings?
Interest is added to your balance, and then you earn interest on that interest. With monthly compounding, regular deposits grow faster the longer you leave them — the calculator shows how much of your final pot comes from interest rather than your own deposits.
Do I pay tax on savings interest in the UK?
Most basic-rate taxpayers can earn up to £1,000 of savings interest tax-free each year under the Personal Savings Allowance (£500 for higher-rate taxpayers). Interest inside a Cash ISA is always tax-free. The calculator flags when your projected interest is approaching the allowance.
Should I save or invest for my goal?
As a general guide, cash savings suit goals within about five years because the balance will not fall. For longer goals, investing in a Stocks & Shares ISA has historically grown faster, though the value can go down as well as up.
What interest rate should I enter?
Use the AER (Annual Equivalent Rate) shown on your savings account. If you have not opened one yet, check current best-buy easy-access or regular-saver rates and use that as a realistic figure — you can try a few rates to see how much difference a better account makes.
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