Savings Goal Calculator United Kingdom
This savings goal calculator works out how much to save each month to reach a target by a set date, allowing for money already saved and an assumed rate.
What it does
The Savings Goal Calculator works out the level monthly amount you need to put aside to reach a target by a chosen date, allowing for any money you have already saved and an interest rate you assume.
Data sources & parameters
This calculator uses standard financial formulas and runs entirely in your browser. It needs no external rate data — your result is computed only from the values you enter above.
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
monthly = remaining × i ÷ ((1 + i)^m − 1), where i is the monthly rate, m the number of months and remaining is the goal less the grown-up value of what you have already saved (at 0% it is simply remaining ÷ m).
How it works
It compounds your starting balance forward over the number of months, works out how much of the goal is still to be funded, then solves for the fixed monthly deposit that closes the gap — using the standard future-value-of-an-annuity formula.
Where it is used
- Planning how much to save each month for a house deposit
- Sizing a monthly transfer for a holiday or wedding fund
- Seeing how a starting pot and interest cut the monthly amount
Worked example
To reach £20,000.00 in 24 months from a standing start with no interest assumed, you need to save … a month, contributing … in total.
This savings goal calculator turns a target amount and a deadline into one level monthly figure, the amount to put aside each month to arrive on time. You can also include money you have already saved and an interest rate you expect to earn, both of which reduce the monthly commitment.
How the calculator works
Enter the amount you want to reach, how many months you have and, optionally, how much you have already saved and the interest rate you assume. The tool projects your existing balance forward, works out how much of the goal is still unfunded, and solves for the fixed monthly deposit that closes the gap by the deadline. It uses the standard future value of an annuity formula, so the answer is the exact level payment rather than a rough average.
Why interest lowers your monthly amount
With no interest, the sum is the amount still needed divided by the number of months. With a rate, any money you have already saved keeps growing throughout the period, and each monthly deposit earns interest for the months that remain after it goes in. The earlier a pound goes in, the longer it compounds, so even a modest rate over a few years reduces the monthly figure. The interest field is optional, but worth filling in with a realistic number.
A worked example
Suppose you want £20,000 for a house deposit in 24 months, starting from zero. At 0% the calculator returns £833.33 a month. At an assumed 4% a year the figure falls to £801.83 a month: you pay in about £19,244 and interest of about £756 makes up the rest. If you already have £2,000 and want £12,000 in 12 months at 0%, the £2,000 covers part of the goal, leaving £10,000 to fund, so you need £833.33 a month but contribute only £10,000 in total.
Reading the results
The main figure is the monthly amount to save. Next to it are the total you will contribute over the period and, when you assume a rate, the interest earned. The breakdown chart splits the goal into your starting balance, your contributions and interest, which add up to the goal when it is reachable.
Choosing the right account for the goal
The rate you can realistically assume depends on where you keep the money, and the right account depends on your timescale. For a goal less than a year away, keeping your money safe matters more than yield, so an easy-access account usually fits. For one to five years, a fixed-rate bond or a Cash ISA can lock in a better rate, with the ISA keeping the interest tax-free. If you are saving for a first home, a Lifetime ISA adds a 25% government bonus on up to £4,000 paid in each tax year, though the property must cost £450,000 or less and there is a 25% charge on withdrawals for any other reason before age 60. Matching the account to the deadline gives you a rate you have a real chance of earning.
Common mistakes when planning a goal
- Ignoring inflation on a distant target. A car, a deposit or a wedding may cost more by the time you get there, so a fixed cash goal can fall short.
- Assuming the headline rate on a variable-rate account, which can be cut at any time.
- Forgetting tax on interest outside an ISA, which reduces the growth you were counting on.
- Setting a deadline with no slack. A buffer keeps the plan on track if you miss a month.
- Setting the plan and forgetting it. Revisit it when your income, rate or goal changes, and raise the monthly amount when you can.
Assumptions and limitations
This is a planning estimate, not a guarantee. It assumes the rate you enter stays the same for the whole period and compounds monthly, and that every deposit is made on time and in full. It ignores tax on interest, account fees and inflation. The rate is your own assumption, so real accounts may pay more or less, and variable rates can change. Treat the monthly figure as a target to revisit, and consider saving slightly more to build in a buffer.
About This Savings Goal Calculator
Use this savings goal calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Frequently asked questions
How much do I need to save each month to reach my goal?
What interest rate should I enter?
Does the calculator account for money I have already saved?
How is the interest compounded?
Is the monthly figure guaranteed to reach my goal?
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