Savings Goal Calculator
Find out how much you need to save each month to reach your savings goal.
Enter Details
Monthly Saving Needed
£232.38
Total Contributions
£8,365.77
Interest Earned
£634.23
How to Reach Your Savings Goal
Setting a savings goal is one of the most effective financial habits you can develop. Whether you are saving for a house deposit, a new car, a holiday, or an emergency fund, knowing exactly how much you need to set aside each month removes the guesswork and keeps you on track.
This calculator uses the future value of an annuity formula to work backwards from your goal. It takes into account any savings you already have, the interest your money will earn while it sits in a savings account, and the time you have available. The result is the precise monthly contribution needed to hit your target.
The interest rate you enter should reflect the rate you expect to earn on your savings. UK easy-access savings accounts currently offer rates between 3% and 5%, while fixed-term accounts may offer slightly more. Even a modest interest rate can meaningfully reduce the monthly amount you need to save, particularly over longer time horizons.
If the monthly amount shown seems too high, try extending your timeline or increasing your starting balance. Small adjustments to either can have a significant impact on the monthly saving required.
Frequently Asked Questions
What interest rate should I use?
Use the rate your savings account currently offers. UK easy-access accounts typically pay 3–5%. If you are unsure, 3.5% is a conservative estimate.
What if I cannot afford the monthly amount shown?
Either extend your timeline, increase your starting balance, or adjust your goal. Even saving a smaller amount consistently is better than saving nothing.
Should I include ISA savings?
Yes. A Cash ISA works the same way as a regular savings account for this calculation, but the interest is tax-free, making it a better choice for most savers.
How does compound interest help my savings?
Compound interest means you earn interest on your interest. Over time, this snowball effect can significantly reduce how much you need to contribute yourself to reach your goal.