Written by Use this savings goal calculator to find out how long to save
Planning to save up a nest-egg is vital if you want to reach your financial goals. The more structured your planning process, the more likely you are to be successful and reach your target on time.
Fortunately, you can use Savvy’s savings goal calculator to help you work out how long it will take you to save up a specified amount of money and how much interest you’ll earn along the way.
Compare savings accounts
Are you looking to grow your savings? Compare a wide range of savings accounts with Savvy so you find the best deal in Australia and the highest interest rate to help grow your savings. Â
Savings goal calculator explained
How do I use the savings goal calculator?
This money saving goal calculator is easy to use and will help you to see both in numbers and graph form how quickly your savings will accumulate. All you have to do is enter the current balance of your savings account and your savings goal. Add the interest rate your savings are earning and how much you are able to contribute to your savings. Change the frequency of your regular deposits by clicking on the green arrow button to change frequency from weekly to fortnightly or monthly and you can see your results.
The interest earned is calculated by compounding at the same frequency as you specify your savings payments are made. This means if you specify ‘fortnightly’ as your payment frequency, the interest earned will be compounded fortnightly also.
Should I make my savings deposit weekly or monthly?
It’s always best to make your savings deposits as frequently as possible, as you'll earn more interest that way. This is because interest is calculated on a daily basis, so more frequent payments mean a more frequent increase in the principal on which interest is calculated, thus more interest earned as a result.
However, you may want to automate your savings deposits so they are made the same day, or the day after your pay is received into your account. If you are paid fortnightly, it might make more practical sense to make your savings deposits fortnightly. Change the frequency on the savings interest calculator to see how this affects the overall interest earned.
What's the best way to get a high interest rate on my savings?
The simplest way to secure a good interest rate on your savings account is to compare as many different savings accounts as possible, which helps you find which offers you the best deal. Don’t just compare interest rates, though: also look at the fees charged and compare the terms and conditions. You may get a higher interest rate on a bonus rate account where there is a minimum monthly deposit requirement, but if you aren’t able to keep up with such conditions, it may not be the best option for you.
It’s important to compare all the different types of savings accounts on the market to ensure you get one that’s right for your personal needs.   By comparing your options with Savvy, you’re best positioning yourself to make the right call for your situation. We've been helping Australians compare for over a decade to bring you the most relevant and up-to-date financial information.
Types of savings account
Why compare savings accounts with Savvy?
Top tips on how to save more money
Forego just one extra coffee a day
Adding the equivalent of the cost of just one cup of coffee a day – an additional $5 – can make a huge difference to your savings in the long term. It’s well worth keeping a spending diary for a month and see where you’re spending money unnecessarily. You can then work out where you can make small but frequent savings, which will help you reach your financial goals far more quickly.
Compare savings accounts before you commit
There are many financial products which have been designed to help you save. These range from children’s accounts to joint accounts, high-yield accounts, online savings accounts, term deposits, Certificate of Deposit accounts, mortgage offset savings accounts and more. It’s well worth comparing all these different financial products and savings accounts to work out which one is the best fit to help you achieve your financial goals.
Create a savings plan
It’s important to write down your savings plan and use the savings goal calculator to work out exactly how much you’ll save, step by step. For example, record your savings at the end of Month 1, Month 2 and beyond so you can see your savings grow. This will give you more motivation and incentive to keep on track with your savings journey, as well as show you the areas in which you can improve.
Lower your credit card limit and pay it off in full each month
Another way to boost your potential savings is to reduce the spending limit on your credit cards and always make sure you pay them off in full at the end of each month. This way, you’ll be fully aware of what you’re spending, which can help you cut out any unnecessary expenses which all add up at the end of the month.
More of your frequently asked questions about saving
Our savings calculators
Use our savings calculator to help you calculate how much you could save over a set timeframe based on different deposit sizes and frequencies.
Your savings can put in work for you. Crunch the numbers to see how much interest you could earn on top of your interest by compounding daily, monthly and annually.
It's crucial to have a clear idea of your monthly household budget to see where your money is going and where it could potentially be better spent.
If you're applying for a loan or need to know what your salary is for your tax return, you can use our annualisation calculator to work out what you'll earn this financial year.
Setting savings goals is important. With this tool, you can work out how much you'll need to deposit to reach your financial aims over a set timeframe.
Just as important as knowing how much to deposit is working out how long it'll take to reach your goals. This savings goal calculator can help you do just that.
