Regular Saver Calculator UK

Regular Savings Formula:

\[ FV = PMT \times \frac{(1 + \frac{r}{n})^{n \times t} - 1}{\frac{r}{n}} \]

Monthly Payment (PMT):

GBP

Annual Interest Rate:

Time Period:

years

Compounding Frequency:

Future Value (FV):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Regular Savings Calculator?

The Regular Savings Calculator helps you estimate the future value of regular savings contributions with compound interest. It's particularly useful for UK savers who want to plan their financial future with regular deposits.

2. How Does the Calculator Work?

The calculator uses the future value of an annuity formula:

\[ FV = PMT \times \frac{(1 + \frac{r}{n})^{n \times t} - 1}{\frac{r}{n}} \]

Where:

\( FV \) — Future Value (GBP)
\( PMT \) — Periodic Payment (GBP per period)
\( r \) — Annual Interest Rate (decimal)
\( n \) — Compounding Periods Per Year (unitless)
\( t \) — Time in Years (years)

Explanation: This formula calculates how much your regular savings will grow with compound interest over time.

3. Importance of Regular Saving

Details: Regular saving is one of the most effective ways to build wealth over time. The power of compound interest means your money grows exponentially, especially when you start early and contribute consistently.

4. Using the Calculator

Tips: Enter your monthly payment amount, annual interest rate (up to 7.1% as of September 2025), time period in years, and select your compounding frequency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the maximum interest rate I can get in the UK?
A: As of September 2025, some regular saver accounts offer up to 7.1% AER, though rates vary by provider and account type.

Q2: How often should I contribute to maximize returns?
A: Regular, consistent contributions combined with compound interest will maximize your returns over time.

Q3: Are there tax implications for savings interest?
A: In the UK, you have a Personal Savings Allowance. Basic rate taxpayers can earn £1,000 in savings interest tax-free, while higher rate taxpayers have a £500 allowance.

Q4: What's the difference between AER and APR?
A: AER (Annual Equivalent Rate) shows what you'll earn on savings, while APR (Annual Percentage Rate) shows what you'll pay on borrowing.

Q5: Should I prioritize regular saving over other investments?
A: Regular saving is excellent for building emergency funds and short-term goals, but for long-term wealth building, consider diversifying with other investments like stocks and ISAs.