Savings Goal Calculator
If you’re saving for a deposit, the question most people want answered is simple – how long will it actually take? Enter your target, what you already have, and what you can save each period to find out.
How to use this calculator
Enter your savings goal – typically the deposit amount you’re working toward plus an allowance for buying costs. Add your current savings balance, then enter your regular deposit amount and how often you save. Select the interest rate your savings account is currently paying – check your bank app or statement for the current rate rather than using the placeholder.
The result shows how long it takes to reach your goal at that savings rate, along with a breakdown of how much comes from your deposits versus interest earned. Try adjusting the deposit amount to see how much of a difference an extra $100 or $200 per month makes to your timeline.
Common Questions
How much deposit do I actually need to buy in Melbourne? The minimum deposit most lenders accept is 5% of the purchase price, though borrowing above 80% triggers LMI which adds to your upfront costs. A 20% deposit avoids LMI entirely and gives you access to a broader range of lenders and products. For a $700,000 property that’s $140,000 in savings before buying costs – the Property Buying Cost calculator can help you work out the full amount you need at settlement.
Does my savings history matter to a lender? Yes, significantly. Most lenders want to see genuine savings – funds you’ve accumulated yourself over at least three months rather than a gift or windfall. Regular deposits into a savings account demonstrate the savings pattern lenders look for, which is one reason starting early and saving consistently matters beyond just reaching the dollar target.
What counts as genuine savings? Generally, funds held in a savings or transaction account for at least three months, term deposits, shares or managed funds held for three months or more, and equity in an existing property. Lenders verify this through three months of account statements showing the savings pattern – a lump sum that appeared recently without a clear savings history behind it won’t satisfy the requirement. Gifts from family, first home owner grants, and tax refunds typically don’t count as genuine savings on their own, though some lenders treat them differently depending on the overall application. If you’re relying on a mix of sources for your deposit, it’s worth checking how a specific lender will assess it before you apply.
Should I save more or invest while saving for a deposit? It depends on your timeline. If you’re planning to buy within two to three years, keeping savings in a high interest savings account avoids the risk of a market downturn reducing your balance at the wrong time. If your timeline is longer – four or five years or more – investing a portion while continuing to save can produce a higher balance by the time you’re ready to buy, though it introduces volatility. There’s no universal answer, but the timeline is the key variable.
Once your savings are on track, the next step is understanding how much you can borrow and what the full buying process looks like. If you want to work through that before you hit your target, you can book a call using the button below.
