Free calculator — compound interest projections
Savings Goal Calculator
Set your target, enter what you have and what you can save each month, and see exactly how long it takes — and how much of it comes from compound growth.
Time to goal
6yr 2mo
$1,000/month at 5% return → $100k
5 years
$81k
10 years
$172k
20 years
$438k
Estimates only. Returns are not guaranteed. Not financial advice.
Turn your savings goal into a full plan
See how your savings goal fits with your super, investments, and tax position — all in one place.
See my full plan →How to reach your savings goal faster
There are three levers: how much you start with, how much you add each month, and what return you earn on the balance. Increasing your monthly deposit is the most controllable lever — each extra $100/month shaves months off your timeline. Starting with a larger balance (even from a tax refund or windfall) has an outsized effect because that money compounds for the entire savings period.
For house deposit goals, the First Home Buyer Calculator shows you the minimum deposit required for your target price, and whether government schemes like the First Home Guarantee (5% deposit, no LMI) apply. Reducing your required deposit from 20% to 5% can cut years off your timeline.
If your goal is 5+ years away, consider whether a portion of your savings could be invested in a diversified ETF portfolio rather than left in cash. The difference between 4% (savings account) and 8% (diversified shares) on a $50,000 balance over 10 years is roughly $29,000 in additional growth.
Frequently asked questions
How does compound interest affect my savings goal?
Compound interest means you earn interest on your interest. Over long time horizons this has a dramatic effect — a 5% annual return on $50,000 over 20 years produces roughly $83,000 in growth alone, without any additional deposits. The earlier you start and the longer the horizon, the more compound interest does the heavy lifting. This calculator shows you the split between your deposits and the growth they generate.
What return rate should I use?
For a high-interest savings account or term deposit, use 4–5% (current RBA environment). For a diversified ETF portfolio (ASX 200 or global), 7–9% is a common long-run assumption before inflation. For a balanced super fund, 6–8% is typical. Use a conservative number for goals with a fixed deadline (house deposit in 3 years) and a higher number only for long-horizon goals where you have time to ride out volatility.
What is a realistic monthly savings rate?
The 50/30/20 rule suggests saving 20% of after-tax income. On a $70,000 salary (roughly $4,800/month take-home), that's around $960/month. Many Australians saving for a house deposit push higher — $1,500–$2,500/month — by temporarily cutting discretionary spending. Even an extra $200/month makes a material difference when compounded over 5 years.
Should I save in a savings account or invest for my goal?
It depends on your timeline and risk tolerance. For goals under 3 years (house deposit, emergency fund), a high-interest savings account or term deposit is appropriate — your principal is protected. For goals beyond 5 years (retirement, financial independence), a diversified share portfolio typically outperforms cash over long periods. For goals between 3–5 years, a conservative mix makes sense. Never invest money in shares that you might need within 2–3 years.
Can I use my super to reach a savings goal?
For a first home deposit, yes — the First Home Super Saver Scheme (FHSS) lets you voluntarily contribute up to $15,000/year into super (taxed at 15% instead of your marginal rate), then withdraw up to $50,000 for a first home purchase. For other goals, super is locked away until age 60. The First Home Guarantee (5% deposit, no LMI) may also reduce how much you need to save.
How does inflation affect my savings goal?
If your goal has a fixed dollar amount (e.g., a $100,000 house deposit), inflation works against you — prices rise while you're saving. If inflation runs at 3% and your savings earn 4%, your real return is only 1%. This calculator uses nominal returns, not inflation-adjusted returns. For long-horizon goals, consider setting a higher target to account for rising costs.