Savings Goal Calculator
Set a target and see exactly how much to put away each month to reach it, with interest doing part of the work. Perfect for a house deposit, a car or an emergency fund.
Last updated 4 July 2026 · Written and reviewed by Mustafa Bilgic
Savings goal calculator
The monthly saving needed to hit your target.
Assumes interest compounds monthly and the rate holds. Use a tax-free ISA where you can.
Save with a target in mind
Saving is far easier when you know the number. This savings goal calculator works backwards from your target and timeframe to tell you exactly how much to set aside each month — taking account of any money you've already saved and the interest your savings earn along the way. It's ideal for a house deposit, a wedding, a new car or building an emergency fund.
To reach £20,000 in 4 years with £3,000 already saved and a 4% AER, you'd need to save about £318 a month. Over the four years you'd pay in around £15,300 yourself, with interest (about £1,700) and your £3,000 head start making up the rest.
How interest helps
Because your balance earns interest each month and that interest itself earns interest, compounding quietly reduces how much you have to save. The higher the rate and the longer the timeframe, the more work interest does. Over short periods the effect is small, but over five years or more it's meaningful — which is why locking in a competitive rate matters. Our compound interest calculator shows the growth of a pot in detail, and the savings interest calculator covers the tax on interest.
Use a tax-free wrapper
Interest on ordinary savings can be taxable once it exceeds your Personal Savings Allowance (£1,000 for basic-rate, £500 for higher-rate taxpayers, nil for additional-rate). A cash ISA shelters the interest completely, and for a first home a Lifetime ISA adds a 25% government bonus on up to £4,000 a year. Check your remaining allowance with our ISA allowance calculator before saving elsewhere.
Make it automatic
The single most effective savings tactic is a standing order that moves the money the day after payday, before you can spend it. Treat the monthly figure here as a bill you owe your future self. If it looks too high, either extend the timeframe or trim the target — small changes to either make a big difference. Build the amount into a wider plan with our budget calculator so it fits alongside your other outgoings.
Keep an emergency buffer separate
Before saving hard for a goal, it's worth holding three to six months of essential spending in instant-access savings for emergencies. Mixing the two pots tempts you to raid your goal when the boiler breaks. Keep the emergency fund liquid and the goal money in a higher-rate or fixed account, and revisit the monthly figure here whenever your income, target or interest rate changes.
Frequently asked questions
How much should I save each month to reach my goal?
It depends on the target, how long you have, what you've already saved and the interest rate. For example, £20,000 in 4 years from a £3,000 start at 4% needs about £290 a month. Enter your own figures above for a precise monthly amount.
Does interest reduce how much I need to save?
Yes. Your balance earns interest each month and that interest compounds, so part of your goal is met by growth rather than your own contributions. The higher the rate and the longer the timeframe, the more interest does the work.
Where should I keep my savings?
For most goals a competitive cash ISA shelters the interest from tax. If you're saving for a first home, a Lifetime ISA adds a 25% bonus on up to £4,000 a year. Keep an emergency fund in instant-access savings separate from your goal money.
What if the monthly amount is too high?
Extend the timeframe, lower the target, or increase your starting amount if you can. Even a slightly longer timeframe reduces the monthly figure noticeably because contributions and interest both have longer to work. Adjust the inputs above to find a realistic plan.
Is the interest on my savings taxable?
It can be. Basic-rate taxpayers get a £1,000 Personal Savings Allowance, higher-rate taxpayers £500, and additional-rate taxpayers none. Interest above that is taxed. A cash ISA keeps all the interest tax-free regardless of the amount.