Savings calculator

 

The following page contains a savings plan calculator, designed to help you determine a savings target and achieve your financial goal.

Please take a moment to read the following information before proceeding to the calculator.

Assumptions

Results are expressed in today's dollars, excluding fees and charges and assuming an inflation rate of 2.5%.

Length of month

As with most financial calculators, all months are assumed to be of equal length. In reality, many savings accounts accrue on a daily basis, leading to a varying number of days’ interest depending on the number of days in the particular month.

Number of weeks and fortnights in a year

One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.

Deposit and interest compounding frequency

The calculator assumes that deposits and interest crediting occurs at the same frequency. This frequency is an input parameter entered by the user - namely monthly, fortnightly or weekly.

Rounding of time saved

The time saved is presented as a number of years and months, for all available repayment frequency options, namely monthly, fortnightly and weekly. This is rounded down to the next lower month, and hence is slightly conservative.

Rounding of amounts of total accumulation and interest earned

The amounts of total accumulation and interest earned are rounded to the nearer cent. In practice, the accuracy of these amounts is dependent on the rounding protocols used for interim amounts of interest credited to the account.

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