Savings Goal Calculator

A common rule of thumb is to save at least 20% of your take-home pay, though the right amount depends entirely on your goal and timeline. Use this calculator to work backwards from your target: enter your savings goal, a realistic interest rate, and the time frame you want, and it will tell you the exact monthly amount needed. Don't forget to factor in your existing savings — every pound you've already saved reduces the amount you need to contribute each month.

For most people, a Cash ISA is the better choice if you'll be saving over the long term or already use your Personal Savings Allowance. Inside an ISA, all interest is completely tax-free, meaning your compound growth is never eroded by tax. Basic-rate taxpayers get a £1,000 Personal Savings Allowance on non-ISA savings, but higher-rate taxpayers only get £500 and additional-rate taxpayers get nothing. The annual ISA allowance is £20,000 for 2025/26. High-interest regular savings accounts can sometimes beat ISA rates short-term — compare the net-of-tax return carefully.

Most financial advisers recommend keeping 3–6 months of essential outgoings in an easily accessible savings account as an emergency fund. For example, if your monthly essentials (rent/mortgage, food, utilities, transport) total £1,500, you should aim for £4,500–£9,000 set aside in easy-access savings. Once your emergency fund is in place, you can direct additional savings towards longer-term goals in higher-rate fixed accounts or ISAs. Use this calculator to plan how quickly you can build your emergency fund with a monthly contribution.

Yes — even a 1% difference in interest rate can save you months of contributions when working towards a large goal. For example, to save £25,000 starting from zero with £400/month, a 3% rate takes about 5.1 years while a 4.5% rate takes only 4.7 years — saving roughly 5 months of effort. The difference grows even more significantly for larger goals and longer time horizons. Always shop around for the best rate, particularly fixed-term bonds and cash ISAs, which typically pay more than easy-access accounts.

A Lifetime ISA (LISA) is a government-backed account that adds a 25% bonus on top of your contributions — up to £1,000 free per year — if the money is used to buy your first home (up to £450,000) or for retirement after age 60. You can contribute up to £4,000 per year and must be aged 18–39 to open one. This makes it extremely powerful for first-time buyers: a £4,000 contribution becomes £5,000 with the government bonus. Note that withdrawing for any other reason incurs a 25% penalty (which effectively claws back the bonus and more). The LISA allowance sits within your overall £20,000 ISA allowance.