Savings Goal Calculator
Enter your savings goal and target date to find out how much to save each month — with or without interest.
Reviewed by Richard Ross · Last updated April 2026
How Savings Goal Calculator works
Savings goal formula
Without interest: monthly saving = (Goal − Current Savings) ÷ Months. With interest, the formula uses the annuity payment formula: PMT = FV × r ÷ [(1+r)^n − 1], adjusted for the future value of existing savings.
The impact of interest
Even modest interest rates reduce the required monthly saving. At 4% annual interest, saving for a £20,000 goal over 24 months requires £791/month vs £833/month with no interest — saving £1,008 in required contributions.
Choosing the right UK savings account for your goal
For goals under 12 months, an easy-access savings account or Cash ISA offers flexibility without penalties. For goals 1–5 years away, a fixed-rate bond or fixed-term ISA can lock in a higher rate — currently 4.5–5.5% for 1–2 year terms in 2025. First-time buyers saving for a deposit should consider a Lifetime ISA (LISA): the government adds a 25% bonus on up to £4,000 per year (£1,000 free annually), making it the highest-yielding option for eligible buyers under 40.
Common pitfalls when working towards a savings goal
The most common mistake is not accounting for irregular expenses — car repairs, holidays, or home maintenance — that derail contributions. Build a small contingency buffer into your monthly target. A second pitfall is setting up a standing order to a current account rather than a dedicated savings account: money left in a current account is far more likely to be spent. Automate savings on payday so the money moves before you can spend it.
Source: MoneyHelper — Saving for a goal (moneyhelper.org.uk). GOV.UK — Lifetime ISA rules (gov.uk/lifetime-isa). HMRC — ISA allowances (gov.uk/individual-savings-accounts).
Frequently asked questions
How much should I save each month for a £20,000 deposit?
Over 24 months with no interest: £833/month. With 4% annual interest: approximately £791/month. The higher your savings account rate, the less you need to save each month.
What is the 50/30/20 savings rule?
Spend 50% of take-home pay on needs, 30% on wants, and save 20%. On £2,500 take-home, that's £500/month in savings. Adjust based on your goals and financial situation.
How do I save faster?
Reduce expenses, increase income, automate savings (direct debit on payday), and use high-interest accounts (ISA, instant access savings, fixed-rate bonds for longer targets).
Can I use a Lifetime ISA to save for a house deposit?
Yes — if you are a first-time buyer aged 18–39. The government adds a 25% bonus on contributions up to £4,000 per year (a maximum £1,000 bonus annually). The property must cost £450,000 or less. Funds must be held for at least 12 months before use. Withdrawing for any other reason incurs a 25% penalty that effectively reclaims more than just the bonus.
How does inflation affect my savings goal?
If your goal is a future purchase (e.g., a car or holiday), inflation may increase the cost by the time you reach it. At 3% inflation, a £20,000 target in 3 years actually requires £21,855. Consider building an inflation buffer into your goal, particularly for goals over 2 years away.
How does inflation affect my savings goal?
Inflation erodes the real purchasing power of your savings. If your goal is to save £20,000 for a purchase in 5 years but inflation runs at 3% per year, you will need approximately £23,185 in 5 years to buy the same thing. This calculator uses nominal returns — consider adding an inflation buffer of 2-3% per year to your target if the goal is more than 2 years away.
What is the best account for a savings goal?
The best account depends on your timeline and tax position. For goals under 2 years, a high-interest easy-access account or fixed-rate bond offers simplicity. For goals over 2 years, a Cash ISA protects returns from income tax. For longer-term goals over 5 years, a Stocks and Shares ISA offers higher potential returns. For home purchase specifically, the Lifetime ISA (LISA) offers a 25% government bonus on up to £4,000 per year for buyers under 40.
Can I reach my goal faster by investing rather than saving?
Investing in stocks and shares has historically produced higher returns than cash savings over periods of 5 years or more — typically 5-8% per year versus 4-5% for cash. However, investment values can fall, meaning you might not reach your goal by a specific date. Cash savings are better for fixed-deadline goals where you cannot afford to be short. For goals 5+ years away with some flexibility, a mix of cash and investment ISA is often appropriate.
What happens if I miss a monthly contribution?
Missing one or two contributions does not derail most long-term savings goals, but it does extend the timeline or require larger catch-up contributions later. The calculator assumes regular contributions every month. If you know you will have irregular contributions (bonuses, seasonal income), add your annual total and divide by 12 for an average monthly figure. Building an emergency fund first reduces the likelihood of needing to dip into goal-specific savings.
How do I set a realistic savings goal?
A realistic goal has a specific target amount, a clear deadline, and a monthly contribution you can actually sustain. Work backwards: if you need £15,000 in 3 years at 4.5% interest, you need to save approximately £370/month from zero. If that is unaffordable, either extend the timeline, reduce the target, or accept a lower interest rate scenario. The calculator lets you adjust all these variables to find a plan that fits your budget.
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