Savings Goal Calculator
how much to save each month
Free UK savings goal calculator. Find out how much you need to save each month to reach your target. Includes interest, inflation and timeline planning.
Find the best savings rates
Compare easy-access accounts, Cash ISAs and fixed-rate bonds. (affiliate link)
How to plan your UK savings goal — and hit it on time
Whether you're saving for a house deposit, a car, an emergency fund, or a holiday, the challenge is always the same: how much do you need to set aside each month to hit your target by a specific date? This calculator answers that question precisely, accounting for the interest your savings will earn along the way.
The calculation works backwards from your goal. Given a target amount, a deadline, your current savings balance, and an assumed interest rate, it computes the exact monthly contribution required. The interest earned along the way means you need to save less per month than a naive division of the goal by the number of months would suggest — especially over longer time horizons.
Choosing the right savings account
The interest rate you earn has a significant impact on how much you need to save monthly, particularly for longer goals. UK savers have several options worth considering. Cash ISAs shelter your interest from income tax — crucial if you're a higher-rate taxpayer, since you could otherwise pay 40% tax on savings interest above your Personal Savings Allowance (£500 for higher-rate payers). Easy-access accounts keep your money flexible but typically offer slightly lower rates than fixed-term bonds. Regular savings accounts offered by banks often carry attractive rates but require a fixed monthly contribution and limit withdrawals.
The Personal Savings Allowance
Basic-rate taxpayers can earn up to £1,000 in savings interest per year without paying tax. Higher-rate taxpayers have a £500 allowance, and additional-rate taxpayers have no allowance at all. With interest rates higher than they've been for years, it's worth checking whether your savings interest exceeds these thresholds — if it does, a Cash ISA becomes significantly more valuable.
Building an emergency fund first
Financial planners typically recommend holding three to six months of essential expenses in an easy-access account before saving for other goals. This buffer prevents you from needing to raid longer-term savings — or take on debt — when unexpected costs arise. Use this calculator to plan that emergency fund alongside your other savings goals, and consider running separate scenarios for each target.
Savings Goal Calculator — UK
This savings calculator tells you exactly how much you need to set aside each month to reach a financial goal by a target date, taking into account interest earned on your savings.
Best UK savings accounts (2024)
- Cash ISA: Tax-free interest up to your £20,000 annual ISA allowance. Currently paying 4.5–5.2% AER.
- Easy-access savings: Flexible withdrawals, typically 4–5% AER.
- Fixed-rate bonds: Higher rates (up to 5.3% AER) in exchange for locking your money away for 1–5 years.
- Lifetime ISA (LISA): 25% government bonus on up to £4,000/year for first-home buyers or retirement savers aged 18–39.
How much should you save each month?
A common rule of thumb is the 50/30/20 rule — spend 50% of take-home pay on needs, 30% on wants, and save 20%. In practice, saving any consistent amount is better than none. For UK households, the average monthly saving is around £200–250, but the right number for you depends entirely on your income, outgoings and goal. Use the calculator above to work backwards from your target: enter what you want, by when, and it tells you exactly what to save each month.
What is a good savings goal?
A good savings goal is specific, time-bound and purposeful. Vague intentions to "save more" rarely work — a concrete target like "£8,000 for a car by December 2026" is far more motivating. For most UK savers, the priority order looks like this: first, build a £1,000 starter emergency fund; second, pay off high-interest debt; third, grow the emergency fund to 3–6 months of expenses; then save for specific goals like a house deposit, car or holiday.
How to reach a £10,000 savings goal
The biggest lever is starting sooner — even a modest existing balance significantly reduces how long you need. Use a Cash ISA or high-interest easy-access account to make your savings work harder while you build towards the goal.
Tips to save money faster
- Automate it. Set up a standing order on payday so savings leave before you can spend them. Treating savings as a fixed bill is the single most effective habit.
- Use a high-interest account. Even a 1% rate difference on £5,000 is £50/year — and on a £10,000 goal over three years, it can cut weeks off your timeline.
- Set a specific deadline. Open-ended goals drift. Attaching a date creates urgency and makes it easy to track whether you're on course.
- Audit your direct debits. Unused subscriptions and auto-renewed services are a common source of hidden leakage — a monthly review often frees up £30–100 with minimal effort.
- Round up and save the difference. Many UK banks offer round-up features that sweep spare change into savings automatically. Small amounts compound surprisingly quickly.
- Use a Cash ISA for tax efficiency. If your savings interest exceeds your Personal Savings Allowance (£1,000 for basic rate, £500 for higher rate), every pound in a Cash ISA earns tax-free — especially valuable for higher earners.