Savings Calculator
Free interest savings calculator — see how compound interest grows your money
Enter what you're starting with, what you'll add each month and the interest rate, and this projects your balance forward year by year, separating how much came from your own contributions and how much the interest added. It's a straightforward way to see whether a savings goal is realistic at your current pace, or how much you'd need to set aside to reach it by a certain date.
Savings Details
Results
Year-by-Year Breakdown
| Year | Balance | Interest That Year | Total Deposited |
|---|
Contributions do the early work; interest does the late work
In the first few years of saving, almost all of your growing balance is money you put in yourself — the interest is real but small, because it's a percentage of a modest pot. Left alone long enough, that balance crosses an interesting point where the annual interest starts to rival, and then overtake, what you're adding. That crossover is the whole appeal of saving early.
Two figures move the date it happens: the interest rate and, more powerfully, time. It's also worth remembering that a headline savings rate is before tax and before inflation — if prices are rising by 3% a year and your account pays 4%, your money is only really growing by about 1% in what it can buy.
❓ Frequently Asked Questions
How much should I save each month? ▼
A common guideline is to save at least 20% of your take-home pay (the 50/30/20 rule). Use the calculator to work backwards — enter your savings goal and target date, then adjust the monthly contribution until the projected balance matches your goal.
How does compound interest grow my savings? ▼
Interest is added to your balance each period, and in future periods you earn interest on that interest too. This compounding effect means your savings accelerate over time. Starting early is the biggest factor — even small amounts grow significantly over 20–30 years.
What is a good savings interest rate in 2025? ▼
UK easy-access savings accounts in 2025 offered around 4–5% AER, while fixed-rate bonds paid slightly more. ISA rates were similar. In the USA, high-yield savings accounts offered 4–5% APY. Rates change frequently, so check current offers from your bank.
What is the difference between AER and APR? ▼
AER (Annual Equivalent Rate) is used for savings accounts and shows the interest you'd earn over a year, factoring in compounding. APR (Annual Percentage Rate) is used for borrowing and includes fees. For savings, always compare AER figures.
How much do I need to save to retire? ▼
A common rule of thumb is to save 25× your expected annual retirement spending (the "4% rule"). For example, if you plan to spend £30,000 per year, you'd target a £750,000 retirement pot. Use the savings calculator to project how long it will take to reach a target amount.
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