Your inputs
Assumes monthly contributions are made at the end of each month and the annual rate stays constant. Actual savings products may calculate interest differently.
How this savings calculator works
The calculator combines an initial balance with regular monthly contributions and applies a monthly equivalent of the annual interest rate over the selected saving period.
Worked example
With £5,000 already saved, £250 added each month, a 4% annual rate and a 10-year saving period, the final value is higher than the total amount personally contributed because of estimated interest growth.
How to interpret the result
The projected balance separates your own contributions from estimated interest. This can help illustrate how both regular saving and time affect the final amount.
Savings calculator versus savings goal calculator
This calculator estimates what your current saving plan may grow to. The Savings Goal Calculator works in the opposite direction by estimating how much you may need to save each month to reach a specific target.
When this calculator is useful
This calculator is useful for estimating how a regular saving habit may grow over time, comparing different contribution levels, or seeing the effect of changing the assumed interest rate and saving period.
Worked examples
Example 1: Regular monthly saving
Starting with £5,000 and adding £250 a month for ten years at an assumed 4% annual rate produces a higher final balance than contributions alone because interest is added over time.
Example 2: No interest
If the interest rate is 0%, a £2,000 starting balance plus £200 a month for five years grows only through contributions, making the difference between saving and investment growth easy to see.
Common mistakes to avoid
- Assuming today's savings rate will remain unchanged for many years.
- Ignoring tax or account restrictions where they apply.
- Confusing a quoted annual rate with the exact way a bank credits interest.
- Using this projection as a guaranteed forecast.
Assumptions and limitations
The calculator assumes regular end-of-month contributions, a constant annual rate and monthly compounding for illustration. Actual products can credit interest daily, monthly or annually and may change rates over time.
Related calculators
Savings Goal Calculator · Compound Interest Calculator · Simple Interest Calculator
Frequently asked questions
Does this calculator use compound interest?
Yes. It applies the annual rate on a monthly basis for illustration and includes regular monthly contributions.
Are savings rates guaranteed?
No. Rates can change and different accounts calculate or credit interest differently.
Does this include tax?
No. It shows a simplified gross projection before any tax or account-specific charges.