Project a savings balance over time
A savings projection combines money already set aside, a regular monthly saving amount, a savings rate and a time horizon. It can help you test whether a contribution habit is broadly aligned with a future goal.
The estimate is not a bank account quote. Savings rates can change, some accounts have balance limits or eligibility conditions, and interest may be calculated daily even where it is paid monthly. Check the product terms separately, particularly where bonus interest depends on transaction or deposit conditions and balance limits.
How to read the results
Projected balance is the estimated balance at the end of the selected savings horizon. Total contributed combines the starting balance and all monthly savings deposits, while Illustrative interest is the remaining growth produced by the entered rate.
Savings rate identifies the constant annual percentage used in the model. The balance chart assumes a smooth monthly path, so it does not reflect tax withholding, account conditions, withdrawals or changes to a provider’s rate. Try a lower rate or contribution amount when planning for uncertainty rather than relying only on the default scenario.
Worked example
The default scenario begins with $5,000, adds $750 at the end of each month, earns 4.5% a year and runs for five years. It produces a projected balance of about $56,618 from $50,000 of contributions and about $6,618 of illustrative interest.
This result provides a benchmark for the selected inputs, not a promised account balance. A rate change or a missed deposit would alter the balance and the interest earned.
Assumptions and limitations
- The savings rate remains constant for the whole selected period.
- Interest is modelled with monthly compounding.
- Monthly savings deposits are made at the end of each month.
- Account fees, tax on interest, balance caps and bonus-rate conditions are excluded.
- There are no withdrawals or additional deposits beyond the entered monthly amount.
Frequently asked questions
Does the result include tax on savings interest?
No. The projection excludes tax, which may reduce the amount retained depending on your circumstances.
What happens if my account rate changes?
Enter the new rate to create a fresh illustration; the calculator does not model a changing rate automatically.
Can I use this as a savings target plan?
It can provide a simple estimate, but it does not account for your full budget, account rules or unexpected expenses.
This calculator and supporting information provide general estimates only. They do not take account of every product rule, tax consequence or personal circumstance and are not financial, tax, credit or legal advice.