Savings Calculator

See how your savings grow over time with regular deposits and compound interest.

Rates as of Q2 2025 (example)

£
£
%
0.1 15
years
1 50
Result

Payment breakdown

Advertisement

Was this calculator helpful?

For educational purposes only. Consult a financial advisor.

What is a Savings Calculator?

A savings calculator projects how a savings balance grows over time when you make regular monthly deposits and earn interest, compounded monthly. It's useful for working toward a specific savings goal — such as a house deposit, emergency fund, or holiday — by showing how your balance builds from both your own deposits and the interest earned along the way.

How to Use This Savings Calculator

  1. Enter your initial deposit — the amount you're starting with (enter 0 if starting from scratch).
  2. Enter how much you plan to deposit each month.
  3. Enter the annual interest rate (example rate — enter your actual or expected rate, as savings rates vary by account type and provider) and how many years you plan to save.
  4. Review your projected final balance, total deposits, and total interest earned, along with a year-by-year breakdown.

How is Savings Growth Calculated?

This calculator compounds interest monthly: each month, interest is calculated on the current balance and added to it, then your monthly deposit is added on top — so the following month's interest is calculated on a balance that includes both the previous interest and deposit.

Formula: Each month: Balance = Balance × (1 + monthly rate) + Monthly Deposit, where monthly rate = Annual Rate ÷ 12 ÷ 100. This repeats for the total number of months (years × 12).

Example: Starting with a £1,000 initial deposit, adding £250 per month, at a 4% annual interest rate (example rate — enter your expected rate) over 10 years, the balance grows to roughly £38,300. Of that, £31,000 comes from your deposits (£1,000 initial plus £30,000 over 10 years of £250/month), and about £7,300 is interest earned. (Note: all figures in this example are for illustration purposes only and are not guaranteed.)

Saving Money in the UK

Interest rates on UK savings accounts vary considerably — easy access accounts, notice accounts, and fixed-rate bonds typically offer different rates, with fixed-rate products generally paying more in exchange for locking your money away for a set period. Interest earned on savings outside an ISA counts toward your Personal Savings Allowance, beyond which it may be taxable — many savers use a Cash ISA to shelter interest from tax up to the annual ISA allowance (see the ISA Calculator). Savings held with UK-authorised banks and building societies are typically protected up to £85,000 per person per institution under the Financial Services Compensation Scheme (FSCS) — if you're saving a large amount, it's worth checking this protection limit applies to your provider and considering whether to spread large balances across institutions.

Tips for Using This Savings Calculator

  • If you're saving toward a specific goal (like a house deposit), work backward from the target amount and date to see what monthly deposit you'd need — try adjusting the monthly deposit field to find a figure that gets you to your goal in time.
  • Compare easy access and fixed-rate accounts — fixed-rate bonds often pay more but restrict access to your money for the term, which may not suit savings you might need at short notice.
  • Consider whether a Cash ISA makes sense for your savings to shelter interest from tax, especially if your total savings interest across accounts might exceed your Personal Savings Allowance.
  • Remember interest rates on variable-rate accounts can change — this calculator assumes a constant rate for the full period, which may not reflect how your actual account performs over time.

Frequently Asked Questions

How often does this calculator compound interest?

This calculator compounds interest monthly. Each month, interest is added to the balance based on the current balance, and then your monthly deposit is added on top, so the following month's interest is calculated on this larger balance.

Is the 4% interest rate accurate for my savings account?

No — the default is an example only. Savings rates vary significantly between easy access accounts, notice accounts, fixed-rate bonds, and Cash ISAs, and change over time. Use the actual rate for your account, or a realistic rate if you're researching options.

Does this calculator account for tax on interest?

No. This calculator shows growth before tax. In the UK, interest earned outside a Cash ISA may be subject to Income Tax beyond your Personal Savings Allowance. Holding savings in a Cash ISA can shelter interest from tax up to the annual ISA allowance.

Are my savings protected if the bank fails?

Savings held with UK-authorised banks, building societies, and credit unions are typically protected up to £85,000 per person per institution under the Financial Services Compensation Scheme (FSCS). If your total savings with one institution exceed this, consider spreading them across different institutions.

How can I work out the monthly deposit I need for a specific savings goal?

Try entering different monthly deposit amounts and see which one brings your projected balance close to your target amount by your target date. Increasing the time horizon or interest rate (if you can find a better rate) can also reduce the monthly deposit needed to reach the same goal.

What is the difference between easy access and fixed-rate savings accounts?

Easy access accounts let you withdraw money whenever you like, typically with lower interest rates. Fixed-rate bonds lock your money away for a set term (e.g., 1 or 2 years) in exchange for a typically higher interest rate, with penalties or no access for early withdrawal.

Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice or a guarantee of returns. The default interest rate is a sample value and does not reflect rates currently available from any specific account or provider. Savings rates change frequently. Always compare current rates from providers and consult a qualified financial adviser before making financial decisions.