Savings goal calculator
A house deposit, a car, matric dance, December holiday or emergency fund: find out how much to put away each month.
How it's calculated
What you've already saved grows at your interest rate. We then work out the fixed monthly deposit that closes the gap by your deadline. Set the rate to 0 if the money sits in an ordinary account.
The monthly deposit is: gap × r ÷ ((1 + r)n − 1), where r is the annual rate ÷ 12 and n is the number of months.
Worked example: R100 000 in 3 years
- You want R100 000 in 36 months and already have R10 000, earning 7.5% a year.
- Your R10 000 grows to about R12 514 on its own, leaving a gap of about R87 486.
- You need to save R2 174.56 a month (about R501.82 a week).
- Interest earns you about R11 716 of the goal.
Saving for a house? See what the bond would cost with the bond repayment calculator.
Where to keep short-term savings
For goals under about 3 years, use a high-interest savings account, notice deposit or money market fund rather than shares, so the money is there when you need it. Many SA banks pay close to the repo rate on notice and money market accounts.
How big should an emergency fund be?
A common guideline is 3 to 6 months of essential expenses: rent or bond, food, transport, insurance and debt repayments.
Frequently asked questions
How much should I save each month?
A common target is at least 10–20% of your take-home pay. The monthly budget planner shows what that means for your salary.
What if my savings earn no interest?
Set the interest rate to 0. The monthly amount is then simply the gap divided by the number of months, for example R90 000 ÷ 36 = R2 500 a month.
Should I use a TFSA for a savings goal?
A TFSA suits long-term goals best, because withdrawals can't be replaced and still count towards your limits. For short-term goals, a notice or money market account is usually more practical. See the TFSA calculator.