Savings Goal Calculator Explained for Australians
Works out how much to save each month to reach a goal by a deadline. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Savings Goal Calculator.
Why it matters
Australians save and invest through bank accounts, term deposits, shares, ETFs and property. Interest and dividends are taxable, franking credits can offset tax on dividends, and inflation steadily reduces the value of money that isn’t growing.
What you need to enter
The calculator asks for 4 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Savings goal ($) | 20000 |
| Saved so far ($) | 2000 |
| Interest rate (%) | 4.5 |
| Months to goal | 24 |
The formula
Monthly saving = (goal − future value of current savings) × r ÷ ((1 + r)^n − 1).
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| Monthly saving needed | $710.66 |
| Weekly equivalent | $164.00 |
The headline figure is $710.66 (monthly saving needed). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the monthly saving needed changes with savings goal
The table below keeps every other input at the example value and moves only “Savings goal ($)” up and down by 10% and 20%. It shows how sensitive the monthly saving needed is to that one figure.
| Savings goal ($) | Monthly saving needed |
|---|---|
| 16,000 | $551.07 |
| 18,000 | $630.86 |
| 20,000 | $710.66 |
| 22,000 | $790.46 |
| 24,000 | $870.25 |
At 16,000 the result is $551.07; at 24,000 it is $870.25. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
Automate the transfer for payday so the money moves before you can spend it.
Keep going
Before relying on the number, read Savings Goal Mistakes Australians Make and How to Avoid Them. You might also find these guides useful:
- How the Term Deposit Calculator Works (With a Worked Example)
- Simple Interest Calculator: Formula, Example and What the Result Means
- Using a Inflation Calculator in Australia: A Step-by-Step Guide
Frequently asked questions
- Are investment returns guaranteed?
- Only some products, such as term deposits, have fixed rates. Share and fund returns vary and can be negative.
- Is my bank deposit protected?
- The Financial Claims Scheme guarantees deposits up to $250,000 per account holder per authorised bank.
- Is this investment advice?
- No. The calculators provide general information only.
Run your own numbers in the Savings Goal Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.