Find out how much to save each month to hit a savings goal, or how long your current saving will take. Interest and tax on interest are included.
This savings goal calculator works out how much you need to put aside each month to reach a target, or how long a fixed monthly amount will take, for anyone saving for a house deposit, a car, a wedding or an emergency fund. It compounds interest monthly from the AER your bank quotes and can deduct tax on interest, such as Irish DIRT.
How Much Do I Need to Save Each Month to Reach My Goal?
Subtract what you have already saved from your goal and divide by the number of months, then reduce it slightly for interest. A savings goal calculator does the compounding for you: to turn €1,000 into €10,000 in two years you need €375 a month with no interest, or about €362 a month at 3% AER.
What Formula Does the Savings Goal Calculator Use?
It treats your savings as a lump sum that grows with interest plus a series of equal monthly deposits made at the end of each month.
Monthly saving = (goal − saved × (1 + r)^n) × r ÷ ((1 + r)^n − 1)
With no interest: monthly saving = (goal − saved) ÷ n
Here n is the number of months. Banks in the UK and Ireland quote the AER (annual equivalent rate), which already includes compounding, so the calculator takes its twelfth root rather than dividing by 12. Dividing by 12 would slightly overstate your interest.
Monthly Savings Needed for Common Goals
Starting from zero at 3% AER with no tax. The numbers are the same in euro, pounds or dollars.
| Goal | 1 year | 2 years | 3 years | 5 years |
|---|---|---|---|---|
| 5,000 | 411.04 | 202.49 | 132.99 | 77.42 |
| 10,000 | 822.09 | 404.97 | 265.97 | 154.84 |
| 20,000 | 1,644.18 | 809.94 | 531.94 | 309.69 |
| 50,000 | 4,110.45 | 2,024.85 | 1,329.86 | 774.22 |
How Much Does Interest Help a Savings Goal?
Over short periods interest helps less than most people expect, and the monthly amount does most of the work. In the default example, €9,688 of the €10,000 comes from your own deposits and only about €312 from interest. Over 5 years the effect grows: saving for €20,000 at 3% needs €309.69 a month instead of €333.33, because interest has longer to compound. To see how a balance grows once you stop paying in, use the compound interest calculator.
Does Tax on Interest Change Your Savings Goal?
Yes, tax reduces the interest you keep, so enter your rate in the “Tax on interest” box. In Ireland, Deposit Interest Retention Tax (DIRT) of 33% is deducted from interest on deposit accounts, so a 2.5% AER pays about 1.68% after tax. In the UK most savers pay nothing: the Personal Savings Allowance lets basic rate taxpayers earn £1,000 of interest tax free (£500 for higher rate, £0 for additional rate), and cash ISAs are tax free within the £20,000 ISA allowance for 2026 to 2027.
Worked Examples: A Wedding in Leeds and a Deposit in Cork
Emma in Leeds wants £6,000 for her wedding in 18 months and has £500 saved in a cash ISA paying 4% AER. She needs £295.50 a month. She pays in £5,819.07 in total and earns about £181 in tax free interest. Without interest she would need £305.56 a month.
Liam in Cork is saving €20,000 for a house deposit in 3 years. He has €2,000 in a deposit account at 2.5% AER and enters 33% tax for DIRT. He needs €485.21 a month, about €7 a month more than if the interest were untaxed. If he can only manage €400 a month, switching to “How long it will take” shows the date he will get there.
Should Your Goal Allow for Inflation?
For goals more than a year or two away, yes: the thing you are saving for will probably cost more. The European Central Bank aims for 2% inflation over the medium term, so a purchase that costs €10,000 today would cost about €10,612 in 3 years at that rate. Enter the inflated figure as your goal. For loan-funded purchases, compare the result with the cost of borrowing in the loan calculator.
Keep large goals safe too. Bank deposits are protected up to €100,000 per person per bank in every EU country, and up to £120,000 by the UK’s FSCS from December 2025, so split bigger sums across banks with separate licences.
How Do You Use the Savings Goal Calculator?
Choose what to work out
Pick “How much to save each month” if you have a deadline, or “How long it will take” if you know your monthly budget.
Enter your goal
Type your savings goal, how much you have already saved and your currency: EUR, GBP or USD.
Set time, rate and tax
Enter the months to your goal or your monthly saving, your account AER and any tax on interest, such as 33% DIRT in Ireland.
Read your plan
The monthly saving or time needed appears in large text, with the weekly amount or date, total paid in, interest and final balance.
Frequently Asked Questions
How much should I save each month for €10,000?
To save €10,000 from zero you need about €822 a month for 1 year, €405 for 2 years or €155 for 5 years at 3% AER. With €1,000 already saved, 2 years drops to about €362 a month.
What is AER?
AER, the annual equivalent rate, is the yearly interest you would earn if interest were paid and compounded for a full year. It lets you compare accounts that pay interest monthly or yearly on the same basis.
Is it better to save weekly or monthly?
The total is almost the same either way. Saving weekly can feel easier and earns a few cents more interest. The calculator shows the weekly equivalent, which is the monthly amount times 12 divided by 52.
Do I pay tax on savings interest in Ireland?
Yes. Irish banks deduct Deposit Interest Retention Tax at 33% from interest on deposit accounts held by Irish residents. Enter 33 in the tax box to see the effect on your monthly saving.
How big should an emergency fund be?
A common rule of thumb is three to six months of essential spending, such as rent, food, bills and loan payments. Enter that total as your goal and choose a time frame you can manage.
What if I already have enough saved?
The calculator tells you the goal is already reached. If your savings will grow to the goal through interest alone before your deadline, it shows that no monthly saving is needed.
Sources and Further Reading
- Tax on savings interest: how much is tax free, GOV.UK
- Deposit guarantee schemes, European Commission
- Monetary policy strategy and 2% inflation target, European Central Bank
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Last reviewed: October 2026