Savings Goal Calculator
Whether you're saving for a London house deposit, a wedding, or a year-long career break, this calculator tells you exactly how much to put aside each month to hit the target on time. Plug in the goal, your timeline, and any starting balance — the maths handles the rest.
How is this calculated?
Given a target future value (FV), starting balance (P), monthly rate (r/12), and number of months (n), the calculator solves the future value of an annuity formula for the required monthly contribution: PMT = (FV − P × (1 + r/12)^n) ÷ [((1 + r/12)^n − 1) / (r/12)]. Returns are assumed to compound monthly. For a Cash ISA the rate is the AER; for a regular savings account use the headline rate after any introductory bonus expires.
Frequently Asked Questions
Where should I keep short-term savings?
For goals within 1–3 years, a Cash ISA or easy-access savings account protects capital and uses your tax-free allowance. For 3–5 years, fixed-rate bonds or premium bonds can edge out easy-access. Anything five years or further out can reasonably hold equities inside a Stocks & Shares ISA.
Should I count the Lifetime ISA bonus?
Yes, if the goal is a first home up to £450,000 or retirement after age 60. The government adds 25% on contributions up to £4,000 per tax year — effectively £1,000 free annually. Withdrawals for any other purpose carry a 25% penalty that wipes out the bonus and a bit more.
How does inflation affect my goal?
If you're saving for a fixed-price item the cost may rise before you buy. House prices, weddings, and cars all tend to drift up year on year. Either set the goal in tomorrow's pounds (today's price × inflation) or use a real return — nominal rate minus inflation — when projecting growth.
What's a sensible savings rate to assume?
In 2026 leading easy-access accounts pay around 4%–5% AER, fixed-rate bonds slightly more. For longer-term goals invested in a Stocks & Shares ISA, a 5%–6% real return is a defensible long-run assumption, though year-to-year results will vary widely.
Last updated: May 2026 · Rates sourced from HMRC