Savings Calculator UK
This savings calculator UK shows how long it takes to hit a savings goal, or how much you need to save each month. Starting with £1,000 and saving £200 a month at 4% AER, you reach £10,000 in about 3 years 6 months. It also checks tax on interest above your personal savings allowance.
- Savings allowance (basic rate)£1,000 interest
- Savings allowance (higher rate)£500 interest
- Starting rate for savingsup to £5,000
Updated November 2026 · Uses 2026/27 savings allowances
Calculate your savings
Your result
Fill in the details, then press Calculate to see your result with the working shown.
You changed your details. Press Calculate to update the result.
How the savings calculator works
Each month the calculator adds interest at the monthly equivalent of your AER, then adds your monthly saving. It repeats this until you reach the goal, or, in the other mode, finds the monthly amount that reaches the goal in the time you have. AER (annual equivalent rate) already includes the effect of compounding, so 4% AER grows £1,000 to exactly £1,040 in a year.
Tax on savings interest 2026/27
| Your income tax band | Personal savings allowance | Tax on interest above it |
|---|---|---|
| Basic rate | £1,000 | 20% |
| Higher rate | £500 | 40% |
| Additional rate | £0 | 45% |
If your other taxable income is below £17,570, you may also get the starting rate for savings: up to £5,000 of interest tax-free, reduced by £1 for every £1 of other income above the £12,570 personal allowance. Interest in a cash ISA is always tax-free and does not use your allowance.
How long to save £10,000
| Monthly saving | Starting from £0 at 4% AER |
|---|---|
| £100 | about 7 years 3 months |
| £200 | about 3 years 11 months |
| £300 | about 2 years 8 months |
| £500 | about 1 year 8 months |
Interest makes the biggest difference over longer periods. Regular saver accounts often pay higher rates but cap how much you can pay in each month.
Tips for reaching a savings goal
- Set up a standing order for payday so the saving happens before you can spend it.
- Keep an emergency fund in an easy-access account and longer-term savings in a fixed or notice account if the rate is better.
- Use your cash ISA allowance if your interest could go over your personal savings allowance.
- Check your rate each year: introductory bonuses often end after 12 months.
Frequently asked questions
How long will it take to save £10,000?
Saving £200 a month from £1,000 at 4% AER takes about 3 years 6 months. From nothing, it takes about 3 years 11 months.
How much tax do I pay on savings interest?
Basic-rate taxpayers can earn £1,000 of interest tax-free and higher-rate taxpayers £500. Interest above that is taxed at your income tax rate.
What is the starting rate for savings?
Up to £5,000 of interest can be tax-free if your other income is below £17,570. It is reduced by £1 for every £1 of other income above £12,570.
How much should I save each month to reach a goal?
Divide the goal by the number of months, then reduce it slightly for interest. To reach £10,000 in 3 years from £1,000 at 4%, you need about £233 a month.
Sources and method
We use official UK guidance and recognised formulas, and test each calculator against worked examples. Results are estimates to help you plan, not professional advice. See how we work.