Savings Goal Calculator – How Long To Save

Use Savvy’s money saving goal calculator to find out how long it will take you to reach your target.

Last updated on June 24th, 2022 at 12:47 pm by Cate Cook

Use this savings goal calculator to find out how long to save

Planning to save up a nest-egg is vital if you want to reach your financial goals.  The more structured your planning process, the more likely you are to be successful and reach your target on time.

Fortunately, you can use Savvy’s savings goal calculator to help you work out how long it will take you to save up a specified amount of money and how much interest you’ll earn along the way.

Savings goal calculator explained

How do I use the savings goal calculator?

This money saving goal calculator is easy to use and will help you to see both in numbers and graph form how quickly your savings will accumulate.  All you have to do is enter the current balance of your savings account and your savings goal.  Add the interest rate your savings are earning and how much you are able to contribute to your savings.  Change the frequency of your regular deposits by clicking on the green arrow button to change frequency from weekly to fortnightly or monthly and you can see your results.

The interest earned is calculated by compounding at the same frequency as you specify your savings payments are made.  This means if you specify ‘fortnightly’ as your payment frequency, the interest earned will be compounded fortnightly also.

Should I make my savings deposit weekly or monthly?

It’s always best to make your savings deposits as frequently as possible, as you’ll earn more interest that way. This is because interest is calculated on a daily basis, so more frequent payments mean a more frequent increase in the principal on which interest is calculated, thus more interest earned as a result.

However, you may want to automate your savings deposits so they are made the same day, or the day after your pay is received into your account.  If you are paid fortnightly, it might make more practical sense to make your savings deposits fortnightly.  Change the frequency on the savings interest calculator to see how this affects the overall interest earned.

What's the best way to get a high interest rate on my savings?

The simplest way to secure a good interest rate on your savings account is to compare as many different savings accounts as possible, which helps you find which offers you the best deal.  Don’t just compare interest rates, though: also look at the fees charged and compare the terms and conditions.  You may get a higher interest rate on a bonus rate account where there is a minimum monthly deposit requirement, but if you aren’t able to keep up with such conditions, it may not be the best option for you.

It’s important to compare all the different types of savings accounts on the market to ensure you get one that’s right for your personal needs.    By comparing your options with Savvy, you’re best positioning yourself to make the right call for your situation.  We’ve been helping Australians compare for over a decade to bring you the most relevant and up-to-date financial information.

Top tips on how to save more money

Create a savings plan

It’s important to write down your savings plan and use the savings goal calculator to work out exactly how much you’ll save, step by step.  For example, record your savings at the end of Month 1, Month 2 and beyond so you can see your savings grow.  This will give you more motivation and incentive to keep on track with your savings journey, as well as show you the areas in which you can improve.

Forego just one extra coffee a day

Adding the equivalent of the cost of just one cup of coffee a day – an additional $5 – can make a huge difference to your savings in the long term.  It’s well worth keeping a spending diary for a month and see where you’re spending money unnecessarily.  You can then work out where you can make small but frequent savings, which will help you reach your financial goals far more quickly.

Lower your credit card limit and pay it off in full each month

Another way to boost your potential savings is to reduce the spending limit on your credit cards and always make sure you pay them off in full at the end of each month. This way, you’ll be fully aware of what you’re spending, which can help you cut out any unnecessary expenses which all add up at the end of the month.

Compare savings accounts before you commit

There are many financial products which have been designed to help you save.  These range from children’s accounts to joint accounts, high-yield accounts, online savings accounts, term deposits, Certificate of Deposit accounts, mortgage offset savings accounts and more.  It’s well worth comparing all these different financial products and savings accounts to work out which one is the best fit to help you achieve your financial goals.

More of your frequently asked questions about saving

Can I get a high interest savings account with no ongoing monthly fees?

Yes – there are high interest savings accounts which don’t charge ongoing monthly fees.  However, the general rule is that the higher the interest rate offered, the more restrictions and conditions attached to the account.  By using a savings planner such as Savvy’s savings goal calculator, you can see for yourself how a higher interest rate and no monthly fees will help increase your savings more quickly.

How long does a term deposit lock up my money for?

A term deposit is a type of savings account whereby you make a sizeable deposit and lock it away for a set period to generate interest.  You can choose the length of time you take out a term deposit for, ranging from just one month to up to five years.  The longer the time period you’re prepared to lock up your money for, the higher the interest rate you may be offered.

What is compound frequency?

Compounding is the process of adding the interest you’ve earned to the principal amount you’ve invested.  You then earn interest on your principal sum plus the interest previously added on.  The compounding frequency describes the time period when that interest is added back into your account.  In many savings accounts, the compounding frequency is monthly, which means the interest you’ve earned will be added back into the account each month.

Are there savings accounts with no minimum deposit requirement?

Yes – there are savings accounts which don’t specify that you need to make a minimum deposit.  This means they’re suitable accounts for the start of your savings journey, when you may not have saved up a large amount to qualify for higher-interest accounts which do specify that you need a minimum deposit.  Many online savings accounts have no minimum deposit requirements.

How can a bonus rate savings account help me reach my savings goals?

A bonus rate savings account offers an incentive to make regular deposits each month.  If the minimum deposit requirements are met, a bonus interest rate is applied to the balance of the account.  Such enforced conditions are a good way to add more structure to your savings plan so that you’re disciplined in making regular deposits.  This type of planned and disciplined saving will help you reach your savings goals much sooner.

How often can I make a withdrawal from my savings account?

This will be determined by the terms and conditions of your particular savings account.  Some savings accounts charge withdrawal fees, or limit the number of withdrawals which can be made out of the account each month as a condition of achieving your bonus interest rate.  Others have no limits on the number of withdrawals you’re able to make.

Is there a maximum amount in my savings account to earn interest?

There may be – some lenders may implement a maximum amount on which you can earn interest, such as $1 million.  For most people, this won’t be a major issue, but it’s important to keep in mind if your savings are growing at a fast rate.  If you were to take out a savings account with such a maximum, you would only earn interest on the first $1 million in your account and nothing on any dollar above that amount.