Savings Calculator
Use this free savings calculator to see exactly how much your savings will grow over time. Enter your starting balance, monthly contributions, interest rate, and time period to get a full projection — including total interest earned, year-by-year growth, and how different rates or contributions change your outcome.
Savings Calculator
How to Use the Savings Calculator
- Enter your starting balance (can be £0 if you’re starting fresh)
- Enter your planned monthly contribution
- Enter the annual interest rate (check your bank or savings account)
- Enter how many years you plan to save
- Click Calculate to see your projected final balance and total interest earned
Savings Growth Examples
| Starting Balance | Monthly Contribution | Interest Rate | Years | Final Balance | Interest Earned |
|---|---|---|---|---|---|
| £0 | £100/month | 4.5% | 5 | £6,714 | £714 |
| £1,000 | £200/month | 4.5% | 10 | £32,043 | £7,043 |
| £5,000 | £300/month | 5% | 15 | £90,261 | £31,261 |
| £10,000 | £500/month | 5% | 20 | £224,320 | £94,320 |
| £0 | £500/month | 5% | 30 | £416,129 | £236,129 |
| £20,000 | £1,000/month | 6% | 25 | £751,841 | £431,841 |
Best Savings Accounts in the UK (2025)
The interest rate you choose makes a significant difference to your long-term outcome. Here’s a comparison of the main savings account types available in the UK in 2025:
| Account Type | Typical Rate (2025) | Access | Best For |
|---|---|---|---|
| Easy Access Savings | 4.5–5.0% | Instant | Emergency fund, flexible saving |
| Cash ISA | 4.5–5.2% | Instant or fixed | Tax-free savings up to £20,000/year |
| Fixed-Rate Bond (1yr) | 4.8–5.4% | Locked for term | Lump sums you won’t need soon |
| Fixed-Rate Bond (2yr) | 4.6–5.1% | Locked for term | Medium-term lump sum saving |
| Lifetime ISA (LISA) | 4.0–4.5% + 25% bonus | First home or age 60+ | First-time buyers under 40 |
| Regular Saver | 6–8% (limited deposits) | Monthly contributions | Building habit with limited monthly input |
Always check the current rates at your bank and comparison sites like MoneySavingExpert before choosing an account — rates change frequently and a 1% difference in interest rate can add thousands of pounds to your balance over 10+ years.
The Effect of Inflation on Savings
Earning interest on your savings is important, but so is keeping ahead of inflation. If your savings account pays 4% interest but inflation is running at 3%, your real return is only 1% — your money is growing, but its purchasing power is increasing slowly. During periods when inflation exceeds the savings rate (as happened in 2022–23), the real value of savings actually falls even while the balance grows.
This is why maximising your interest rate matters — especially for long-term savings. Use our Compound Interest Calculator to compare how different interest rates affect your balance over 10, 20, or 30 years.
How to Grow Your Savings Faster
- Start early: Time is the most powerful driver of compound growth — £100/month saved from age 25 outperforms £200/month saved from age 40 at the same interest rate
- Increase contributions gradually: Even £25–£50 extra per month adds thousands over a decade. When you get a pay rise, redirect half of it to savings
- Use your ISA allowance: £20,000 per year can be saved completely tax-free in a Cash ISA or Stocks & Shares ISA
- Avoid unnecessary withdrawals: Every withdrawal interrupts compounding and resets your momentum. Keep an emergency fund separate so you don’t need to dip into long-term savings
- Switch accounts regularly: Banks often offer introductory rates. Review your rate annually and switch if you can get a better deal elsewhere
Savings Goals — How Long Will It Take?
| Savings Goal | Monthly Contribution | Rate | Time to Reach Goal |
|---|---|---|---|
| £1,000 emergency fund | £100/month | 4.5% | ~10 months |
| £5,000 holiday fund | £200/month | 4.5% | ~24 months |
| £20,000 house deposit | £500/month | 5% | ~37 months |
| £50,000 investment pot | £500/month | 5% | ~7 years |
| £100,000 milestone | £1,000/month | 5% | ~7.5 years |
Savings Calculator FAQ
How much should I save each month?
The widely recommended guideline is to save 20% of your take-home pay — the 50/30/20 rule suggests 50% on needs, 30% on wants, and 20% on savings and debt repayment. If that’s not possible right now, even 5–10% is worth starting. Use our Salary Calculator to work out your take-home pay first, then decide on a realistic savings amount.
What is the best interest rate for savings in 2025?
In 2025, competitive savings accounts in the UK offer 4.5–5.4% for fixed-rate bonds and 4.5–5.0% for easy access accounts. Regular savers from high street banks can offer 6–8% on limited monthly deposits. Always compare before committing — rates change frequently.
Is it better to save or invest?
Saving is better for short-term goals (under 5 years) and emergency funds — the money is safe and accessible. Investing in stocks or funds tends to outperform savings over the long term (10+ years), but comes with risk of loss in the short term. Many financial advisers recommend building a 3–6 month emergency fund in savings first, then investing anything additional.
Does compound interest apply to savings accounts?
Yes — most savings accounts compound interest either daily, monthly, or annually. The more frequently it compounds, the slightly faster your balance grows. This calculator uses monthly compounding, which is the most common for UK savings accounts. See our Compound Interest Calculator for a detailed breakdown by compounding frequency.
What is the Cash ISA allowance for 2025?
The Cash ISA allowance remains at £20,000 per tax year for 2025/26. Interest earned within an ISA is completely tax-free, making it one of the most efficient savings vehicles for UK residents. You can hold multiple ISAs but the total contributions across all ISAs cannot exceed £20,000 in a single tax year.
Related Calculators
- Compound Interest Calculator — See how compounding grows your money at different rates
- Interest Calculator — Calculate simple or compound interest on any amount
- ROI Calculator — Compare your savings return against other investment types
- Mortgage Calculator — Plan how much to save for a house deposit
- Salary Calculator — Work out how much of your salary you can afford to save