Savings Goal Time Calculator (AU)

How to Use the Savings Goal Calculator

Our free savings goal calculator helps Australians plan their savings strategy by showing exactly how long it will take to reach a target amount. Whether saving for a house deposit, emergency fund, holiday, or car, this tool accounts for interest, inflation, tax on interest, and increasing deposits.

Compound interest is the most powerful force in savings. When your bank pays interest on your balance, that interest earns interest in subsequent periods. As of 2025, Australian bonus saver accounts offer 4.5%–5.5% p.a., while term deposits range from 4.0%–5.0%.

If inflation is 3.5% per year, a $100,000 target today needs to be approximately $107,200 in two years for the same purchasing power. Our L2 Detailed mode shows both the nominal goal and the inflation-adjusted goal. The RBA targets 2–3% inflation.

Interest earned on savings accounts is assessable income taxed at your marginal rate. For someone at 37% earning 5% on $50,000, annual interest is $2,500, tax is $925, leaving an effective after-tax return of 3.15%.

Automate deposits on payday so savings happen before spending. Increase deposits annually to match salary increases. Add lump sums from tax returns or bonuses. Compare rates and consider splitting between a bonus saver and term deposit.

The 50/30/20 rule suggests 20% of after-tax income for savings and debt. For the median Australian full-time salary of approximately $72,000 (about $4,600 after tax monthly), this means saving around $920 per month.

With $5,000 saved, depositing $1,000/month at 5%, you'd reach $50,000 in approximately 39 months.

For regular deposits, a bonus saver is better. Term deposits lock money but guarantee a rate. Consider splitting for goals under 12 months.

Yes, all interest is assessable income. Banks report to the ATO. Tax is paid at year-end, not deducted from your account.