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 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.

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

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Compound Interest Calculator ISA Calculator Inflation Calculator Budget Planner

Frequently asked questions

Savings Guide

How to reach a savings goal faster

Reaching a savings target comes down to three levers: how much you already have, how much you add each month, and the return rate on your savings. The interplay between these, especially over longer time horizons, means that starting earlier often matters more than saving harder, because compound interest does more of the work for you.

How compound interest works

Compound interest means you earn interest on your interest, not just on the original amount. In year one, £10,000 at 4% earns £400. In year two you earn 4% on £10,400, so £416, not £400. The gap seems small at first but widens dramatically over time: after 20 years, £10,000 at 4% grows to around £21,900 without adding a single penny. Monthly compounding (which most UK savings accounts use) accelerates this slightly further than annual compounding.

What interest rate should you use?

The right rate depends on where you plan to keep the money. For cash savings in 2026/27, easy-access ISAs and high-interest current accounts typically offer 3–5%; fixed-rate bonds and cash ISAs can reach 4–5.5% for 1–2 year terms. For investments in a Stocks and Shares ISA the long-run real return of global equities has been around 5–7% above inflation historically, though this varies significantly year to year and cannot be guaranteed. For short-term goals (under 3 years) stick to cash; for long-term goals (5+ years) consider investments, but be comfortable with the possibility of the value falling in the short term.

The ISA shelter

In the UK, interest earned inside an ISA is completely free of income tax. Outside an ISA, the Personal Savings Allowance lets basic-rate taxpayers earn £1,000 of interest tax-free and higher-rate taxpayers earn £500 (additional-rate taxpayers get nothing). Once your savings are large enough that interest could exceed these thresholds, sheltering them in a Cash ISA or Stocks and Shares ISA is usually the right move. The annual ISA allowance is £20,000.

Practical ways to accelerate your goal

Automate contributions: set up a standing order for the day after payday so the money moves before you can spend it.
Drip-feed windfalls: bonuses, tax rebates, and inheritance can make a disproportionate difference when invested early in the compounding curve.
Chase the rate: loyalty doesn't pay in savings; switching accounts regularly to the best available rate can add hundreds of pounds per year on larger balances.
Reinvest interest: make sure interest is reinvested rather than paid to a separate account, otherwise you lose the compounding benefit.

How long to reach common savings goals

Assuming a 4.5% annual interest rate, compounded monthly. Starting from £0.

Goal	£200/mo	£400/mo	£600/mo
£5,000 emergency fund	2.1 yrs	1.1 yrs	8 mo
£10,000 deposit boost	4 yrs	2.1 yrs	1.4 yrs
£20,000 house deposit	7.4 yrs	3.9 yrs	2.7 yrs
£50,000 (e.g. car/reno)	15.9 yrs	8.7 yrs	6 yrs
£100,000	25.6 yrs	14.3 yrs	10 yrs

Use the calculator above to model your exact numbers, the table above is illustrative only.

How this calculator works

What it calculates: The monthly contribution needed to reach your savings goal by a target date, and how long it will take at a given monthly amount, both using compound interest compounded monthly.
Key assumptions: Interest compounded monthly
Constant interest rate over the full period
Contributions made at the start of each month
No tax on interest (assumes ISA or within PSA)
The maths: Uses the future value of an annuity formula: FV = P(1 + r)ⁿ + C × [(1 + r)ⁿ − 1] / r, where P is the starting balance, C is the monthly contribution, r is the monthly rate (annual ÷ 12), and n is the number of months.
When it may not be accurate: Interest rates change over time. Returns on investments are not guaranteed and can fall as well as rise. For long-term investment goals (5+ years), a financial adviser can model more realistic variable return scenarios.

Sources & methodology

Built and maintained by UK Money Tools, a personal finance resource (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.