Savings Goal Calculator

How to Use This Savings Goal Calculator

This savings goal calculator works in two directions. Pick a target and a deadline to find out how much you need to save each week, fortnight or month — or enter what you can afford to put away and it becomes a savings time calculator, showing how long it will take to reach your target. Either way you'll see your total deposits, the interest you're likely to earn, and when you'll pass the 25%, 50%, 75% and 100% marks.

How the Calculation Works

Worked Example

You want $20,000 in 2 years, you've already saved $2,000, and your savings account pays 4.5% p.a. Saving weekly, you'd need to put away $163.75 a week for 104 weeks. That's $17,029.93 in deposits, and interest of $970.07 makes up the rest (about 4.9% of the final balance). You'd pass the halfway mark of $10,000 within about a year.

Prefer to save each payday? The fortnightly equivalent is $327.65 a fortnight, or $710.66 a month if you're paid monthly. Without any interest, the same goal would take $173.08 a week — so even a modest rate saves you around $9 a week.

Tips for Reaching Your Savings Target Faster

• Automate it. Set up an automatic transfer to your savings account on payday so the money is gone before you can spend it.
• Try the 52-week challenge. Save $1 in week one, $2 in week two and so on — by week 52 you'll have put away $1,378. It's a handy way to build the habit before committing to a fixed weekly amount.
• Keep the bonus rate. High-interest savings accounts often require a minimum monthly deposit or no withdrawals to earn their bonus rate. Missing the conditions can drop your rate to a much lower base rate for that month.
• Separate your goals. A dedicated account (or sub-account) for each goal — house deposit, emergency fund, holiday, car — makes progress easier to see and harder to dip into.
• Put windfalls to work. Adding a tax refund or bonus to your current savings and re-running the calculator shows how much it lowers your regular deposit.

Frequently Asked Questions

How does a savings goal calculator work?

Enter your savings goal, how much you've already saved, the interest rate on your account and how often you'll deposit. Choose "How much do I need to save?" to get the regular amount needed to hit your target by a set time, or "How long will it take?" to see when a fixed deposit gets you there. It then shows total deposits, interest earned and milestone dates.

How much do I need to save a week to reach my goal?

Take what you still need (your goal minus current savings), then divide by the number of weeks you have — that's the answer with no interest. Interest lowers the amount slightly because your balance earns money as it grows. For example, reaching $20,000 in 2 years from $2,000 already saved takes $173.08 a week at 0%, or $163.75 a week at 4.5% p.a.

Is a target savings calculator different from a savings goal calculator?

No — "target savings", "savings target", "saving goal" and "savings goal" calculators all answer the same question: how much to put away, and for how long, to end up with a set amount. This page covers both directions, working out the deposit for a deadline or the time for a deposit.

How long will it take to reach my savings goal?

Switch the calculator to "How long will it take?" and enter what you can save each week, fortnight or month. It works through your balance one deposit at a time, adding interest each period, until you reach the goal, and shows the result in years and months. If you only rely on interest with no deposits, it may never get there — the calculator will tell you.

Should I save weekly, fortnightly or monthly?

Match your deposits to your pay cycle so the money moves out before you can spend it — most Australians are paid weekly, fortnightly or monthly. Saving more often makes very little difference to interest on its own; what matters most is the total you put away each year. The side-by-side figures show the equivalent amount for each frequency over the same time frame.

How much difference does interest make to a savings goal?

Over a year or two, interest usually covers only a small share of the goal — most of the money comes from your own deposits. Over longer time frames compounding becomes more significant, so a higher rate can noticeably cut the amount you need to save. Many high-interest savings accounts only pay their bonus rate if you meet conditions such as a minimum monthly deposit or no withdrawals, so check you'll qualify each month.

Do I pay tax on the interest my savings earn?

Yes. Interest from bank accounts and term deposits is taxable income in Australia and must be declared in your tax return, where it's taxed at your marginal rate. This calculator shows interest before tax, so your after-tax result will be a little lower if you pay income tax.

Should I use a savings account or a term deposit for my goal?

A savings account lets you add money every pay and withdraw if plans change, which suits a goal you're building up with regular deposits. A term deposit locks a lump sum away for a fixed term at a fixed rate, and usually doesn't accept top-ups, so it suits money you already have and won't need until the term ends. Some savers use both — build the balance in a savings account, then move a chunk into a term deposit.

What are common savings goals, and how much should I aim for?

Popular goals include a house deposit, an emergency fund, a holiday, a car, a wedding or education costs. A common rule of thumb for an emergency fund is three to six months of essential expenses, while a home deposit target depends on the property price and whether you aim for 20% to avoid lenders mortgage insurance. Breaking a big goal into milestones — like the 25%, 50% and 75% points shown above — helps keep you on track.