How does the Savings Calculator work?
Interest is credited monthly and compounds. Your deposit is added at the start of each month.
Background & details
How to read the result
The final balance is the amount sitting in the account at the end of the term. Alongside it the tool shows your total deposits (initial amount plus every monthly contribution) and the interest earned – the gap between the two. That interest is the money that worked for you without any extra effort.
What realistic figures look like
For safe products like instant-access or fixed-term savings, 2 to 4% p.a. is typical depending on the rate cycle. If you instead feed a broadly diversified equity ETF, long-run averages of 5 to 7% are common – but with swings a plain savings calculator does not show. Set the rate conservatively and the result becomes an honest floor rather than a best-case dream.
Common mistakes
- Confusing the headline rate: Promotional teaser rates often apply only for the first few months. Enter the lasting rate, not the intro offer.
- Forgetting tax: In most countries interest is taxable once any allowance is used up. The final balance shown here is before tax.
- Ignoring inflation: The figures are nominal. At 2% inflation your final balance buys noticeably less in real terms.
Practical tips
The biggest lever is time, not the rate. Starting five years earlier often beats a one-point-higher rate, thanks to compounding. Try it: extend the term by five years and watch the interest jump. It also pays to nudge the monthly deposit up a little each year, for example in step with pay rises.
When to use it – and when not
It is ideal for plannable goals with a steady rate: an emergency fund, a house deposit, a buffer for a child. For volatile stock investments with ongoing fund fees, the ETF savings-plan calculator is more accurate because it factors in the TER. If you only have a one-off lump sum with no monthly deposit, the compound-interest calculator is the more direct route.