Savings Goal Calculator
Work backwards from your target — find out how much to save each month to hit your goal.
Monthly Saving Required
$0
Total Contributions
$0
Interest Earned
$0
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How to Use a Savings Goal Calculator
A savings goal calculator reverses the compound interest formula. Instead of asking "how much will I have?", it asks "how much do I need to contribute to get there?" This is called the PMT (payment) calculation.
The PMT Formula
PMT = (FV − PV × (1+r)^n) / (((1+r)^n − 1) / r)
Where FV is your goal, PV is current savings, r is the monthly interest rate, and n is the number of months.
Tips for Reaching Your Savings Goal Faster
- Automate transfers. Set up a direct debit on payday so saving happens before you spend.
- Use a high-interest savings account. Australian savings accounts currently offer 4–5% p.a., which meaningfully reduces the amount you need to save manually.
- Review regularly. A pay rise, bonus, or reduced expense is an opportunity to save more and reach your goal earlier.
- Split goals. Break a large goal into milestones — hitting each one builds momentum.
Common Savings Goals in Australia
A house deposit (typically 10–20% of purchase price) is the most common large savings goal for Australians. At a median house price of $800,000, a 20% deposit is $160,000. Other popular goals include an emergency fund (3–6 months of expenses), a car, overseas travel, or a wedding.
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Frequently Asked Questions
How much should I save each month?
The amount depends on your goal, timeline, and interest rate. Use this calculator to find the exact figure. As a rough guide, financial planners often recommend saving at least 20% of your take-home income, but the right amount depends on your personal goals.
What interest rate should I use?
For a savings account, use 4–5%. For a term deposit, 4.5–5%. For a shares or ETF portfolio, a long-term average of 7–8% is commonly used but is not guaranteed. Use a conservative estimate when planning.
Does compound interest help me reach my savings goal faster?
Yes. Even modest interest rates meaningfully reduce the monthly contribution required over long timeframes. At 4.5% over 10 years, interest can reduce your required monthly saving by 15–20% compared to zero interest.
What if I already have some savings?
Enter your existing savings in the "Current Savings" field. They will compound over the timeframe, reducing the monthly contribution required. If your existing savings already exceed the goal, we'll tell you.
What is the first home super saver scheme?
The First Home Super Saver (FHSS) scheme lets eligible Australians save for a house deposit inside super, where contributions are taxed at only 15% instead of your marginal rate. You can contribute up to $15,000/year and $50,000 total under the scheme.
Disclaimer: This calculator provides estimates for illustrative purposes only. Interest rates are not guaranteed. This is not financial advice. Seek advice from a licensed financial adviser for your specific situation.
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