See how your savings grow over time with regular deposits and compound interest.
Rates as of Q2 2025 (example)
This calculator shows how a savings balance grows over time with an initial deposit, regular monthly deposits, and compound interest - useful for planning toward a specific savings goal, such as a home deposit, emergency fund, holiday, or any other target amount.
This calculator compounds interest monthly: each month, interest is calculated on the current balance and added to it, then your monthly deposit is added - so future interest is earned on a balance that includes both your deposits and all previously credited interest.
Formula: Each month: Balance = Balance + (Balance × Monthly Rate) + Monthly Deposit, where Monthly Rate = Annual Rate ÷ 12. Total Deposits = Initial Deposit + sum of all Monthly Deposits. Interest Earned = Final Balance − Total Deposits.
Example: Starting with A$1,000 and depositing A$250 per month at a 4% annual interest rate (example rate — enter the rate offered by your account) for 10 years, the balance would grow to about A$38,303.28. Of this, A$31,000 represents your total deposits, and roughly A$7,303.28 represents interest earned. (Note: this example is for illustration purposes only - actual rates and returns vary.)
High-interest savings accounts are widely used by Australians for short-to-medium-term savings goals, and many offer a "bonus" interest rate on top of a lower base rate, conditional on meeting requirements like a minimum monthly deposit and no withdrawals - if you miss these conditions in a given month, your balance typically earns only the lower base rate for that month, reducing your effective growth. Term deposits offer a fixed rate for a fixed period (commonly 3-24 months) in exchange for locking away your funds, generally without the conditions attached to bonus-rate savings accounts - see our Term Deposit Calculator for a comparison. Interest earned on savings is generally taxable income at your marginal tax rate, so the figures shown here are gross (pre-tax) - your actual after-tax growth will be lower. A common savings goal for many Australians is a home deposit; if that's your goal, see our Home Deposit Calculator for guidance on how much you might need based on the property price and loan-to-value ratio you're targeting. For emergency funds, a common guideline is to aim for 3-6 months of essential living expenses in an easily accessible account.
Both calculators use the same underlying compounding mechanics - the main difference is framing. This Savings Calculator is oriented toward everyday savings goals (like a home deposit, emergency fund, or holiday), while the Compound Interest Calculator is framed more generally around investment growth. The inputs and formula are essentially the same.
Many Australian savings accounts offer a higher "bonus" interest rate only if you meet certain conditions each month - commonly, depositing a minimum amount and making no withdrawals. If you don't meet these conditions in a given month, your balance typically earns only a much lower base rate for that month. Check the specific conditions for your account, and consider using the base rate in this calculator for a more conservative estimate if you're unsure you'll consistently meet them.
Savings accounts offer flexibility - you can deposit and withdraw freely (subject to bonus rate conditions), making them suitable for goals where you might need access to funds or want to keep contributing regularly. Term deposits lock your funds away for a fixed period in exchange for a fixed rate, often higher than a savings account's base rate, suiting funds you're confident you won't need during that period. Compare both using our Term Deposit Calculator.
The figures shown are before tax (gross). Interest earned on savings accounts is generally assessable income in Australia, taxed at your marginal tax rate. Your actual after-tax growth will be lower than shown here, depending on your tax bracket - see our Income Tax Calculator for an estimate of your marginal rate.
A common guideline is 3-6 months of essential living expenses (rent/mortgage, utilities, groceries, insurance, minimum debt payments) held in an easily accessible account, separate from your everyday spending account. The right amount depends on your job security, income stability, and other financial buffers (like available credit) - this calculator can help you project how long it would take to build that buffer with regular deposits.
No - this calculator shows nominal growth (in actual dollar terms) without adjusting for inflation. If your savings goal is a fixed future cost (like a deposit on a property whose price might rise over time), consider using our Inflation Calculator to understand how the target amount itself might change, in addition to projecting your savings growth here.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate used is an example only and does not represent a rate currently offered by any specific account - actual rates vary, change frequently, and interest earned is generally subject to tax at your marginal rate. Always compare current rates and conditions across providers and consult a qualified financial adviser for advice specific to your circumstances.