Savings calculator
Welcome to the Savings calculator. It’s here to help you reach your savings goals, calculate how much interest you’re earning and make smarter financial decisions.
Whether you need to know how long it will take to reach a target amount - or how much you need to set aside regularly to reach a savings deadline, the Savings calculator can help you set a target, stay on track and reach your goal.
How the Savings calculator works
1. It shows you how long it will take to reach your goal
If you already know how much you can save regularly, the Savings calculator will show you how long it’ll take.
2. It shows you how much you’ll need to set aside
If you have a deadline you need to meet, the savings calculator will show you how much you need to set aside regularly.
How long will it take to reach my savings goal?
Whether you’re looking to build up your savings buffer or save up for a specific item, the Savings calculator can help you get an idea about how long it will take. You can use the calculator to see the difference just a few extra pounds can make.
The benefits of using the Savings calculator
Saving is never easy, that’s why we’ve also included helpful tips you can use straight away that can help you make the most out of your money.
By using the Savings calculator you will:
Save smarter – by getting a clear idea of the right amount you need to save.
Start your savings plan – by planning well ahead of any deadlines you could potentially reduce your need to borrow for unplanned expenses.
- Make your savings work harder – by seeing the interest your savings are earning you can more easily shop around for the best rates. If you aren’t actively ensuring you’re getting the best rate possible you risk losing out – not just in extra interest but depending on how long term your goals are. Inflation, the rise in the cost of goods and services, means you need more money to buy the same thing.
Find out more about savings in How to Save
Interest is extra money a financial institution pays you for holding your money. The interest rate on your savings is the amount of money you will earn on your money.
For example, if you have £100 in your account and the annual interest rate is 3.5%, you will earn £3.50 in interest by the end of the year. This will bring your account balance to £103.50. You can see your interest rate on your account statement. Not sure or want to know more about interest rates? See our guide – Interest rates explained.
The amount of interest you earn could be different if the rate of interest changes or the balance within your savings account fluctuates during the period that the interest was calculated.
There isn’t just one way to save money. Depending on your goals and circumstances you might prefer to hold your savings in a special type of savings account. Different accounts have various features you might find helpful to your goals – such as having easy access, minimising the tax you pay on your interest or giving you more interest but locking your savings away for a number of years.
If you’re a UK taxpayer, you may have to pay Income Tax on the interest you earn on your savings, except for Cash ISAs.
Most UK adults have a personal savings allowance, letting basic rate taxpayers earn up to £1,000 in interest without paying tax, and higher rate taxpayers can earn £500 interest tax-free.
There’s also a starting rate for savings, up to £5,000. This means the first £5,000 of income from savings is tax-free, provided your total earned or pension income is below £17,570 for the current tax year. This allows some people to receive even more interest without paying tax.
See our guide on Savings and Investments.
