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Savings & compound interest

Savings Calculator

See how your savings could grow, work out how much you need to save to reach a target, or estimate how long it could take to get there.

Free to use
No sign-up
Goal planning

Build your savings plan

Choose what you want to calculate and enter your own figures below.

Compound interest included
A$
A$

Regular contributions are assumed to be made at the end of each contribution period.

A$
A$

We'll estimate the regular amount needed to reach your goal within the selected timeframe.

A$
A$
A$

We'll estimate the first contribution period in which your projected balance reaches the goal.

Ask about your savings result
AI insight

Calculate first and your figures will be added automatically, or ask a general question about savings and compound interest.

Your calculation is ready below. Generate an explanation or edit the question first.
Results are estimates based on a constant interest rate and regular contributions. Actual savings may differ because rates can change. Tax, account fees, withdrawals and inflation are not included.
Understanding your result

What does a savings calculator tell you?

A savings calculator turns a few assumptions โ€” how much you already have, how much you plan to add, the interest rate and the time available โ€” into a projection of how your savings could develop. CalcNest also lets you work backwards from a target or estimate how long a goal could take.

Project future savings

Combine your starting balance, regular deposits and assumed interest rate to estimate how much you could have after a chosen period.

Plan for a target

Enter a savings goal and timeframe to estimate the amount you would need to put aside each week, fortnight, month or year.

Estimate time to goal

Already know how much you can save regularly? Use that amount to estimate when your projected balance could reach a chosen target.

How savings grow

Compound interest explained

Compound interest means interest can be earned on both your original savings and interest that has already been added. Over longer periods, this can create an increasing gap between the money you personally deposit and your total account balance.

Your balance can earn interest on interest

If interest is added to your account rather than withdrawn, the next interest calculation can be based on a larger balance. Repeating that process is what creates compounding.

Starting balance only
A = P ร— (1 + r รท n)nt
A = future balance, P = starting principal, r = annual nominal interest rate as a decimal, n = compounding periods per year and t = time in years.

When you make regular deposits, each deposit has a different amount of time to earn interest. The CalcNest calculator accounts for those recurring contributions separately rather than treating them as if they were all deposited on day one.

Your starting savings have the full selected timeframe to grow.
Each regular contribution begins compounding after it is added.
Interest already credited can itself contribute to future interest.
Worked example

What could regular saving look like?

Consider someone who starts with A$5,000, adds A$500 at the end of every month and assumes a 4% annual interest rate compounded monthly for five years.

Five-year savings example

This is an illustrative calculation using a constant interest rate, not a forecast of an actual savings account.

Illustrative example
Starting savings
A$5,000
Monthly saving
A$500
Interest rate
4% p.a.
Time
5 years
Total money deposited
A$35,000
Projected balance
About A$39,000

Why is the projected balance higher than the amount deposited?

The difference comes from the assumed interest earned over the five years. The interactive graph in the calculator lets you select different points in time to see how much of the balance comes from deposits and how much comes from estimated interest.

Your assumptions

What has the biggest effect on savings growth?

Savings projections can change substantially when you adjust the amount saved, the time available or the assumed interest rate. If you are not sure how much you can realistically put aside, a budget calculator can help you compare income and spending before choosing a regular savings amount.

How much you contribute

Increasing regular contributions directly increases the amount going into your savings and gives more money the opportunity to earn interest.

How long you save

More time means more contribution periods and more opportunities for previously earned interest to become part of the balance that earns future interest.

The interest rate

A higher assumed rate produces more projected interest. Actual savings rates can change, so testing several reasonable scenarios can be more informative than relying on one projection.

Interest rate details

Interest rate, compounding and effective return

Two accounts can quote similar annual rates but produce slightly different results depending on how frequently interest is compounded. It is also important not to confuse a nominal annual rate with an effective annual rate or APY.

TermWhat it meansWhy it matters
Annual interest rateThe yearly rate entered into the calculator.It determines the assumed rate used to grow the balance.
Compounding frequencyHow often interest is added to the balance.More frequent compounding can slightly increase the effective return when the quoted nominal rate is unchanged.
Effective annual rate / APYA yearly rate that reflects the effect of compounding.It can make accounts with different compounding arrangements easier to compare.
Contribution frequencyHow often you add your own money.Money deposited earlier has more time available to earn interest.

How CalcNest interprets your rate

The calculator treats the percentage you enter as a nominal annual interest rate and applies the compounding frequency you select. Regular savings are modelled at the end of each selected contribution period. If your bank quotes an APY or effective annual rate instead, the figures may not match exactly unless the rates are converted onto the same basis.

Choosing where to save

Where could you keep your savings?

The right place for money depends partly on what the money is for and when you expect to need it. Easy access may matter more for short-term or emergency savings, while money that will not be needed for longer may have different options. Product names, protections and account rules vary by country, so compare the terms available where you live.

Everyday account

Transaction or everyday accounts can make money easy to access, but they may pay little or no interest compared with accounts designed specifically for saving.

Easy access Short-term cash

Savings account

A dedicated savings account can pay interest while generally keeping your money accessible. Some accounts have conditions that affect the rate, such as minimum deposits or withdrawal rules.

Interest earning Usually accessible

Term or fixed deposit

A term or fixed deposit generally locks money away for an agreed period in return for a stated rate. Accessing the money early may be restricted or may reduce the interest you receive.

Fixed period Less flexible

Investments

Investing is different from holding cash savings. Investments may offer growth potential over longer periods, but their value can rise or fall and you may receive back less than you invested.

Investment risk Longer-term use
Need the money soon?
Access and stability may be more important than chasing a higher potential return.
Building an emergency fund?
Consider whether the money can be accessed quickly when an unexpected expense occurs.
Planning much further ahead?
You may also want to explore how long-term investing differs from cash saving with our Investment Calculator.

Look beyond the headline interest rate

When comparing places to keep cash savings, check how the advertised rate works, whether there are conditions to earn it, how easily you can withdraw money, any fees or penalties, and what deposit protections apply in your country. The highest advertised rate is not automatically the most suitable account for every savings goal.

Savings goals

Three ways to plan with the calculator

You do not always start a savings plan with the same unknown. Sometimes you know how much you can save; sometimes you know the target; and sometimes you know the deadline.

1

See where your current plan leads

Use Savings Growth when you know your starting balance, regular contribution, assumed rate and timeframe and want to estimate the resulting balance.

2

Work backwards from a target

Use Reach a Goal when you know the amount you want and when you want it. The calculator estimates the regular saving required.

3

Estimate when you could get there

Use Time to Goal when you know how much you can contribute regularly and want to estimate how long it may take to reach your target.

Purchasing power

Your savings balance and inflation are different things

The calculator shows projected future money values. It does not automatically adjust those figures for inflation. If prices rise over time, a future balance may buy less than the same numerical amount buys today. You can explore that separately with the Inflation Calculator.

Future dollars are not the same as today's dollars

For example, reaching a target of 50,000 several years from now does not necessarily mean that 50,000 will have the same purchasing power it has today.

This matters most for long-term goals. If your target represents the future cost of something โ€” rather than simply a fixed account balance โ€” you may want to consider how that cost could change over time.

Savings growth tells you how the numerical account balance may change.
Inflation tells you how purchasing power may change.
Looking at both can provide more context for longer-term planning.
Continue calculating

Useful calculators for your next step

Savings are often only one part of a wider money plan. These CalcNest tools can help you explore purchasing power, investing, budgeting and longer-term goals.

Frequently asked questions

Savings calculator FAQs

Savings interest is generally calculated by applying an interest rate to an account balance. With compound interest, previously credited interest becomes part of the balance and can itself earn interest. The exact calculation depends on the quoted rate and how frequently interest is calculated or credited.
Compound interest is interest earned on both the original balance and interest that has already been added. As the balance grows, future interest calculations can therefore be based on a larger amount.
There is no single monthly amount that suits everyone. It depends on your target, current savings, timeframe and financial circumstances. Use the Reach a Goal mode to enter a target and timeframe and estimate the regular contribution required under your chosen assumptions.
Use the Time to Goal mode and enter your target, current balance, regular contribution and assumed interest rate. The calculator estimates the first contribution period in which the projected balance reaches or exceeds the target.
Yes. If the same nominal annual rate is used, more frequent compounding can produce a slightly higher effective annual return because interest is added to the balance sooner. The size of the difference depends on the rate and timeframe.
A nominal annual interest rate states the annual rate before fully reflecting within-year compounding. APY, or an equivalent effective annual rate, incorporates the effect of compounding over a year. CalcNest asks for an annual nominal rate and separately lets you choose the compounding frequency.
The appropriate place depends on what the money is for and when you expect to need it. Everyday accounts offer easy access but may pay little interest, savings accounts may offer interest while keeping funds accessible, and term or fixed deposits may restrict access for an agreed period. Investments are different from cash savings because their value can rise or fall. Account rules and deposit protections vary by country.
No. The calculator projects savings using the figures you enter and does not deduct tax or account fees or adjust the result for inflation. These factors can affect real-world outcomes.
CalcNest models regular contributions at the end of each selected contribution period. Depositing money at the beginning of each period would give each contribution slightly more time to earn interest and could produce a higher projected balance.
Important: This calculator and supporting information are for general educational purposes only. Results are estimates based on the assumptions entered and are not predictions or guarantees. Actual interest rates, account terms, fees, taxes, withdrawals and inflation can change the outcome. Information about savings accounts, deposits and investments is general only because product rules, terminology and protections vary by country. Consider the terms of any financial product before making a decision.

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