What's Left, step 5 of 7: How much should I put aside?
Savings calculator
See how your savings grow with regular deposits and compound interest.
After 10 years you will have
£32,730.34
including £3,730.34 of interest
Where it comes from
| Item | Total |
|---|---|
| Starting amount | £5,000.00 |
| Your deposits | £24,000.00 |
| Interest earned | £3,730.34 |
| Final balance | £32,730.34 |
This is an estimate, not advice. It assumes the rate stays the same, no tax on the interest (as in an ISA or within your allowances) and ignores inflation.
Year by year
| Year | Paid in | Interest that year | Balance |
|---|---|---|---|
| Year 1 | £7,400.00 | £125.58 | £7,525.58 |
| Year 2 | £9,800.00 | £177.60 | £10,103.18 |
| Year 3 | £12,200.00 | £230.70 | £12,733.88 |
| Year 4 | £14,600.00 | £284.89 | £15,418.78 |
| Year 5 | £17,000.00 | £340.20 | £18,158.98 |
| Year 6 | £19,400.00 | £396.65 | £20,955.63 |
| Year 7 | £21,800.00 | £454.26 | £23,809.89 |
| Year 8 | £24,200.00 | £513.06 | £26,722.95 |
| Year 9 | £26,600.00 | £573.07 | £29,696.02 |
| Year 10 | £29,000.00 | £634.31 | £32,730.34 |
How compound interest works
Interest is added to your balance, and next time interest is paid on that bigger balance too. Over long periods this adds up to much more than the interest on your deposits alone.
Most people can earn some savings interest tax-free under the Personal Savings Allowance, and interest in an ISA is always tax-free.
Common questions
Do I pay tax on savings interest?
Only above your allowances. Basic-rate taxpayers can earn £1,000 of interest a year tax-free, higher-rate £500 and additional-rate nothing. If your other income is low, the £5,000 starting rate for savings can make more tax-free. Interest in an ISA is never taxed.
How much can I put in an ISA?
£20,000 a year in total across all your ISAs.
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These results are an estimate, not financial advice. They use the 2026/27 rates in force on 24 October 2026 and the inputs shown, so your actual tax, pay or costs may differ. Before making a decision about your money, check the figures with HMRC or your provider, or speak to a regulated financial adviser. Free, impartial guidance is available from MoneyHelper.
This page explains the rules using the 2026/27 rates in force on 24 October 2026. It is general information, not financial advice. For decisions about your own money, speak to a regulated financial adviser, or get free, impartial guidance from MoneyHelper.