Savings Calculator — See Your Savings Grow
Work out how much your savings will grow over time with regular contributions and compound interest. Free, instant, and includes an AI savings adviser.
How Savings Growth Is Calculated
When you save money regularly and it earns interest, your balance grows faster over time thanks to compound interest — you earn interest not just on what you put in, but on the interest you've already earned. This calculator models that growth month by month, including your starting amount, regular contributions and interest rate. For a deeper look at how compounding works over longer time horizons, see our Compound Interest Calculator.
Total contributed: 25,000 · Interest earned: 6,847
Why Starting Early Makes Such a Big Difference
The earlier you start saving, the more time compound interest has to work in your favour. Two people saving the same monthly amount at the same rate can end up with dramatically different totals depending purely on when they started.
| Years Saving | Monthly Contribution | Rate | Final Balance |
|---|---|---|---|
| 5 years | 200 | 4.5% | 13,368 |
| 10 years | 200 | 4.5% | 30,281 |
| 20 years | 200 | 4.5% | 77,073 |
| 30 years | 200 | 4.5% | 150,872 |
Where to Keep Your Savings
The right home for your savings depends on how soon you'll need the money, how much risk you're comfortable with, and what's available in your country. Common options worldwide include:
- Easy access savings account. Best for an emergency fund or money you might need at short notice. Lower interest rates but full flexibility. Available in virtually every country.
- Fixed-term / fixed-rate deposit account. Usually offers a higher rate in exchange for locking your money away for a set period, typically 1-5 years. Known as CDs (Certificates of Deposit) in the US, term deposits in Australia, and fixed-rate bonds in the UK.
- Stocks and shares / brokerage account. Higher potential growth over the long term, but with investment risk — value can go down as well as up. Better suited to money you won't need for 5+ years.
- Tax-advantaged accounts. Many countries offer tax-free or tax-deferred savings vehicles — ISAs in the UK, 401(k)/IRA in the US, superannuation in Australia. Check what's available where you live, as these often beat standard savings accounts.
How Much Should You Be Saving?
A commonly recommended guideline is the 50/30/20 rule — 50% of income on needs, 30% on wants, and 20% on savings and debt repayment. If 20% feels unrealistic right now, starting with any consistent amount and increasing it over time is far better than waiting until you can save "properly."
Building an emergency fund of 3-6 months' essential expenses should typically come before other savings goals, since it protects you from needing to borrow at high interest rates if something unexpected happens. Our Emergency Fund Calculator can help you work out your specific target.
FAQs
How does compound interest work on savings?
You earn interest on your original savings plus any interest already earned. Over time this creates exponential rather than linear growth — the longer your money is saved, the faster it compounds.
How much should I save each month?
A common guideline is the 50/30/20 rule — 50% needs, 30% wants, 20% savings and debt repayment. Any consistent amount is better than waiting until you can save the “ideal” amount.
What's a good interest rate for savings?
This varies by account type and market conditions. Easy access accounts typically offer lower rates than fixed-rate accounts, which lock your money away for a set period in exchange for better returns.
Should I save or invest my money?
Savings accounts suit money you might need within 1-5 years due to lower risk. Investments suit longer time horizons (5+ years) where you can ride out market fluctuations for potentially higher returns.
How much difference does starting early make?
A significant difference. Starting 10 years earlier with the same monthly contribution can result in a dramatically higher final balance due to compound growth having more time to work.
What is an emergency fund and how much should I have?
An emergency fund covers 3-6 months of essential expenses in an easily accessible account, protecting you from needing high-interest borrowing if something unexpected happens.
Does this calculator account for tax on interest?
No — this calculator shows gross growth before tax. Tax treatment depends on your account type (ISA, standard savings) and personal tax situation.
Is this savings calculator free?
Yes — completely free, no sign-up required. Enter your figures above for instant results.