|Total monthly contributions|
Savings interest calculator
Use our free savings calculator to see how much interest you could earn. With savings account rates now above 5%, it's a great time to be working on your savings.
Savings interest calculator
How do I calculate interest on my savings?
The money in your savings account benefits from compound interest to help it grow. This means you will earn interest on your interest.
For example, let's say you had a balance of $100,000 in your account with a savings interest rate of 5.00% p.a. The 5.00% p.a. rate will be applied to your balance which results in $5000 interest. However, this is an annual rate, while savings accounts pay interest monthly. So, dividing the annual amount of interest earned by 12 leaves you with $416.66 in interest for the first month.
Now, let's pretend that you don't add any more money into the account other than your initial $100,000 deposit. Going into month 2 you now have a balance of $100,416.66. When calculating your interest for the month, the rate is applied to your whole balance (including the interest payment!). This time, your monthly interest payment is $418.40 - slightly more than in month 1.
This continues month on month, and as you're earning more interest each month, your balance is getting bigger. Because your balance is getting bigger, you're earning even more interest.
Compound interest allows you to grow your money without even depositing anything extra. However, by making regular additional deposits yourself you'll also be increasing the amount of interest you earn each month.
Current savings account interest rates
Motivated to start saving? Take a look at the current rates on offer.
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