| Year | Contributed | Interest | Balance |
|---|---|---|---|
Setting a savings goal. Saving for a house deposit, a wedding, or a big purchase? Enter your target amount and work backwards to see how much you need to save each month to reach it by your deadline. Adjust the interest rate to see how much a better savings account would help.
Understanding compound interest. Albert Einstein allegedly called compound interest the eighth wonder of the world. This calculator shows you why. over 20+ years, the interest on your interest becomes a significant part of your total. Try different time periods to see the difference.
Comparing savings accounts. Got two accounts with different AERs? Plug in both rates to see how much more you'd earn with the higher rate. Even a 0.5% difference compounds into real money over the long term.
AER (Annual Equivalent Rate) shows what you'd earn over a year if interest is paid and compounded monthly. The gross rate is the flat rate before compounding. AER is the fairer comparison because it accounts for how often interest is paid. Always compare AERs when choosing a savings account.
Most UK savers don't pay tax on savings interest thanks to the Personal Savings Allowance: £1,000 for basic rate taxpayers, £500 for higher rate. If you earn more interest than your allowance, you'll need to report it. ISAs offer tax-free savings regardless of how much you earn.
Cash ISAs offer tax-free interest but often have lower rates than the best easy-access accounts. If your interest is within the Personal Savings Allowance, a higher-rate non-ISA account may be better. If you expect to exceed the allowance, an ISA makes sense. This calculator can model both.
The calculator can adjust for inflation to show the real purchasing power of your savings. A 4% return with 2% inflation means your real return is only about 2%. This is important for long-term savings. your nominal balance might look impressive, but inflation erodes what it can actually buy.
Yes. All calculations run in your browser. Your savings details never leave your device.
Most savings calculators are run by banks trying to sell you their products. This one is independent. it doesn't favour any particular account or provider. It runs in your browser, works offline, and doesn't track your data.
It also goes beyond a simple compound interest calculation, with inflation adjustment, goal-based planning, and a clear year-by-year breakdown that shows how your savings grow over time.
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