How does the savings goal calculator work?

The calculator shows two things simultaneously: (1) how much you need to save per month to hit your goal by your target date, assuming interest compounds monthly; and (2) how many months it will take to reach your goal at your planned monthly contribution. Both use the same compound interest formula, so the results account for interest earned on your growing balance.

What interest rate should I enter?

For a cash savings account, use the AER (Annual Equivalent Rate) shown by your bank. High-street instant-access savings accounts typically pay 3-5% in the current environment. Fixed-term accounts may pay more. For a Stocks and Shares ISA or investment account, historical real returns on global equities average around 5-7% per year, though returns vary considerably year to year.

Should I use an ISA for my savings goal?

For goals more than a few months away, a Cash ISA or Stocks and Shares ISA is worth considering. All interest, dividends, and growth inside an ISA are completely tax-free. For shorter-term goals or emergency funds, an easy-access savings account gives you instant access. The £20,000 annual ISA allowance is generous enough to cover most savings goals.

What is an emergency fund and how big should it be?

An emergency fund is money kept in an easily accessible account to cover unexpected expenses, such as car repairs, job loss, or medical bills. Most financial planners recommend 3 to 6 months of essential expenses. Use the calculator with your emergency fund target as the goal amount to find a realistic monthly saving timeline.

How can I reach my savings goal faster?

The three main levers are: (1) increase your monthly contribution, even small increases compound significantly over time; (2) earn a higher interest rate by shopping around for better savings accounts; and (3) reduce the goal timeline by starting earlier. Automating your savings by setting up a direct debit the day after payday removes the temptation to spend first.

Savings & Investing

Savings Goal Calculator

Find out how much to save each month to reach any financial goal, and how long your current contributions will take to get there.

Updated April 2026

Your details

Savings goal

Current savings (optional)

Annual interest rate

Target timeframe

Your planned monthly saving

Used to show how long until you reach your goal

Your results

£297/month Needed to Reach £20,000 in 5 Years

Monthly saving needed to reach £20,000 in 5 years

£296.75

Total contributed £17,805 · Interest £2,195

Goal amount: £20,000
Starting savings: £0
Time to goal at planned saving: 7 years 1 month
Projected balance (5y): £20,000

Breakdown

Time to reach £20,000 saving £200/month

Time to reach goal: 7 years 1 month
Monthly saving: £200.00
Annual rate: 4.5%

Saving £296.75/month for 5 years

Starting savings: £0
Monthly contributions over 5 years: £17,805
Interest earned: +£2,195
Projected balance: £20,000

Related calculators

Compound Interest Calculator ISA Calculator Inflation Calculator Budget Planner

Frequently asked questions

Sources & methodology

Built and maintained by Tim, a personal finance enthusiast (not a financial adviser). Last reviewed April 2026. Rates and thresholds come from official UK government publications.

GOV.UK · UK government legislation and guidance
HMRC · Tax rates, thresholds and official guidance

Figures are estimates only. This is not financial or tax advice. For help with your specific situation, speak to HMRC or a qualified adviser.