Savings Calculator

Keep your savings on track and watch your savings account grow using this handy Savings Calculator from Savvy

Last updated on April 20th, 2022 at 04:44 pm by Cate Cook

Plan your financial goals with Savvy’s savings calculator today

Making regular deposits into a savings account requires discipline and motivation.  Boost your savings enthusiasm by entering information into Savvy’s easy-to-use savings goal calculator and watch how your savings can grow over the years.

Savings calculator explained

How do I use the savings calculator?

Using the savings calculator is quite simple.  First of all, enter the current balance of your savings account and the amount you can afford to pay into it regularly.  You can change the frequency of your deposits by clicking on the green arrow from weekly, to fortnightly or monthly. 

Next, enter in the interest rate your money is earning and the length of time (the term) you intend to watch your savings grow.  When you’ve finished, click anywhere on the Australian savings calculator to see your results.

As well as showing you how much your savings total will be at the end of your savings term, you’ll also be able to see the total amount you’ve contributed and the interest you’ve earned in that timeframe. The graph in the savings goal calculator shows you this information in visual form.

What does compounding interest mean and how does it work?

The interest you earn from a savings account is compounded, which means it’s added onto the principal that you deposit and subsequently generates interest on this combined amount.  As you’re effectively earning ‘interest on interest’, your savings will grow more quickly as you gain interest on a larger amount of capital each month (as the savings interest calculator shows you in graph form).

For example, if you invested $2,000 in a savings account with a 2% p.a. interest rate, you’d earn $40 interest after the first 12 months.  Over the following year, you’d gain 2% interest on $2,040, and so on as your savings increase.  This is the effect of adding the interest onto your principal amount and generating interest on that higher figure: it leads to exponential growth, as you can see on the savings interest calculator graph.

How do I formulate a savings plan?

If you’ve decided to save up for a specific goal, two main things will help you achieve your dream: having a savings plan and having the discipline to stick to it.  Planning your personal finances is the first simple step to getting ahead, which is the most important step to give you the knowledge, motivation and understanding to set yourself financial goals and stick to them.

There are any number of ways you may decide is best to plan out and track your savings.  You could keep a spending diary for a month to see where you’re spending money that you haven’t budgeted for.  Analyse your spending carefully to see where you can make savings.  Look at all your automatic payments for items such as online subscriptions and ask yourself if you’re really using all the services that you’re paying for.  If not, cancel them!  Keep a record of all the subscriptions you’ve cancelled and input this monthly amount into the Australian savings calculator to see how much you’ve really saved.

Additionally, you can use Savvy’s budget planner to work out exactly how much you’re able to put into your savings account each pay day.  Make it a realistic sum so you’re still able to live relatively comfortably with some money left over for occasional treats.

What are my savings account options?

You should always compare all the different savings account and finance options available to you. There are many different savings options available, including:


It’s important to work out what your long-term savings goals are and the timeframe over which you want to achieve a certain amount of savings. This could influence the type of savings account you choose to invest your funds in. Play around with different figures in the savings plan calculator to understand how a small amount deposited regularly can mount up if you leave it in your savings account for long enough.

Some, like term deposits and Certificates of Deposit, lock up your savings for a specified period. Other options, such as bonus rate savings accounts and high interest savings accounts, offer high short-term earning potential. Again, use the savings plan calculator to help you compare the effect of different interest rates and savings terms on your long-term savings balance.

What is bonus interest on a savings account?

Many savings accounts have a base variable interest rate and a bonus interest rate which is applied if certain deposit requirements are met.  For example, an account may have a base interest rate of 0.5% p.a., but if a deposit of at least $250 is made into the savings account in the previous month, a bonus interest rate of 1.25% p.a. is applied for the following month.  Other conditions, such as a minimum required balance and minimum or maximum withdrawals, may also affect your ability to access the bonus rate.

Savings offset accounts, which are an alternative to the above accounts, don’t offer a high interest rate but offset the principal sum of your home loan, meaning it could save you more overall.

It’s important to weigh up your options carefully in the comparison process, which you can conduct right here with Savvy.  By adding more options and considering more factors in the overall process, you can secure the best account for your needs with more confidence.

The requirements which may apply for high interest savings accounts

More of your frequently asked questions about savings

What are savings games and how do you play them?

Saving up money is not usually associated with having fun, but it can be if you play savings games.  One popular savings game involves rolling a set of dice on a set day each week.  Whatever number they show, multiply it by 10 and that is the amount you put into your savings account that week. Similar games use a pack of cards – you draw a card, and whatever card you draw is the amount you’re required to save the following week.

What happens to an account when the account-holder passes an age limit?

In most cases, it will revert to a standard savings account which may not award the bonus interest rate offered to younger customers.  If you do have an age-related account, your lender or financial institution should contact you before an age limit is reached and offer you suitable alternatives.  However, this can serve as an opportunity to reassess your options on the market and compare accounts to find the best one for your needs.

Will saving regularly help me when I apply for my home loan?

Yes – showing a prospective lender that you have made regular contributions to a savings account will help create a favourable impression that you’re responsible with your money and are disciplined enough to save money regularly.  This will certainly assist you when you’re applying for a home loan.

Will regular saving affect my credit score?

Yes – if you regularly make deposits into a savings account, pay off your credit cards at the end of the month, and pay your bills on time, this will result in giving you a higher credit rating, which will assist you when it comes time to get a loan.

Can I salary sacrifice into my savings account?

No – the Australian Taxation Office only permits salary sacrificing into a superannuation account.  This is called making personal voluntary super contributions, and for the 2021-2022 financial year there is a cap or limit of $27,500 per year which can be contributed to a personal super fund.

Are there any restrictions on the number of savings accounts permitted per person?

No – in Australia there are no limits to the number of savings accounts you are permitted to open, although having multiple accounts may expose you to unnecessary account-keeping or administration fees.  However, you may find it useful to have different savings accounts, such as if you were keeping a separate fund for emergencies.

Can I set up direct debits from my savings account?

No – you typically wouldn’t be permitted to set up direct debits from your savings account, as they aren’t designed to be used like a transaction or everyday account.