
import {
  ResponsiveContainer,
  AreaChart,
  Area,
  CartesianGrid,
  XAxis,
  YAxis,
  Tooltip as RTooltip,
  Legend,
} from "recharts";
import ClientOnly from "@/components/ClientOnly";

export const savingsChartData = [
  { month: "Start", balance: 1200, target: 8000 },
  { month: "Mar",   balance: 2600, target: 8000 },
  { month: "Jun",   balance: 4300, target: 8000 },
  { month: "Sep",   balance: 6100, target: 8000 },
  { month: "Dec",   balance: 8000, target: 8000 },
];

> **Want to hit your savings target faster? Try the [Investment Growth Calculator](/calculators/investment-growth)** and find out exactly how much to save each week or fortnight.

---

## Why you need a savings goal

Having a clear savings goal turns a vague idea into a plan.  
Whether you’re building an emergency fund, planning a holiday, or saving for a home deposit, knowing your **target and timeline** gives you focus and motivation.

---

## Table of contents
1. [What to enter](#what-to-enter)
2. [How it works](#how-it-works)
3. [Example: hitting an $8,000 goal](#example-hitting-an-8000-goal)
6. [Tips to stay on track](#tips-to-stay-on-track)
7. [FAQ](#faq)
8. [Disclaimer](#disclaimer)

---

## What to enter

The calculator only needs a few details:

- **Target amount** — the total you want to reach (for example, $8,000)  
- **Current savings** — what you’ve already set aside  
- **Deadline** — in months or years (for example, 12 months)  
- **Expected interest** — optional, if you’re earning interest in a savings account

It then works out **how much to save each week or fortnight** to reach your goal on time.

---

## How it works

Behind the scenes, the calculator uses the **future value of a series** formula.  
In simple terms, it calculates the deposit required (weekly or fortnightly) to grow your balance — including any interest — to the target by your deadline.

---

## Example: hitting an $8,000 goal

| Detail | Amount |
|--------|--------:|
| Target | $8,000 |
| Current savings | $1,200 |
| Interest rate | 3% p.a. (monthly compounding) |
| Timeframe | 12 months |

Required savings: **~$133 per week** (or **~$266 per fortnight**).

> Adjust the interest rate or deadline in the calculator to see how the weekly number moves.

---

## Tips to stay on track

- **Automate transfers** on payday  
- **Keep savings separate** from everyday spending  
- **Track progress** monthly with the calculator  
- **Increase savings** after pay rises, refunds, or bonuses

---

> **Ready to plan your goal?** Use the [Investment Growth](/calculators/investment-growth) calculator to set a clear target, pick your timeframe, and start building momentum.

---

## FAQ

**How accurate is the result?**  
It’s a projection based on your interest rate and cadence. Actual results vary with your bank’s compounding rules.

**Can I include irregular deposits?**  
This tool assumes consistent contributions. You can periodically bump “current savings” to reflect lump sums.

**What interest rate should I use?**  
Use your account rate, or a conservative 3–4% p.a. If unsure, try 0% to see the pure deposit required.

**What if I’m paid fortnightly?**  
Choose fortnightly so it lines up with your pay — it keeps automation simple.

---

## Disclaimer

General information only. Examples are illustrative and assume steady savings and interest.  
Seek personal advice for your circumstances.


Work backwards from your target and deadline to find the weekly or fortnightly amount you need to reach your savings goal on time.

Savings Goal Calculator: How Much Should I Save Each Week?


**Compound interest** is often called *the eighth wonder of the world* — and for good reason.  
It’s interest on interest: your balance earns returns, and those returns go on to earn their own returns.  
Over time, the growth curve bends sharply upwards — a snowball effect for your savings and investments.

---

## Table of contents
1. [What is compound interest?](#what-is-compound-interest)
2. [The compound interest formula](#the-compound-interest-formula)
3. [Worked example](#worked-example)
4. [Visualising compound growth](#visualising-compound-growth)
5. [Try it with your own numbers](#try-it-with-your-own-numbers)
6. [Common mistakes to avoid](#common-mistakes-to-avoid)
7. [How to maximise compounding](#how-to-maximise-compounding)
8. [The bottom line](#the-bottom-line)
9. [FAQs](#faqs)

---

## What is compound interest?

With **simple interest**, you only earn returns on your original deposit.  
With **compound interest**, you earn on both your starting balance *and* the interest already earned.

That’s what makes compounding powerful — it converts time into your biggest ally.  
The longer you stay invested, the faster the growth accelerates, even if your contributions don’t change.

---

## The compound interest formula

`FV = P × (1 + r/n)^(n × t)`

Where:

- **FV** – future value (what you’ll have at the end)  
- **P** – starting amount (principal)  
- **r** – annual interest rate (as a decimal, e.g. 6% → 0.06)  
- **n** – number of compounding periods per year (e.g. 12 for monthly)  
- **t** – time in years

Each compounding period adds new earnings to your balance — and the next round of interest is calculated on that bigger amount.

---

## Worked example

Say you start with **$5,000**, add **$100 each month**, and earn **6% per year**, compounded monthly, for **10 years**.

| Detail | Value |
|--------|------:|
| Total contributions | $17,000 |
| Final balance | ≈ $23,500 |
| Growth from compounding | ≈ $6,500 |

That extra $6,500 didn’t come from extra deposits — it came from **time and consistency**.

> **Tip:** Regular contributions, even modest ones, matter far more than timing the market.

---

## Visualising compound growth

Think of compounding like rolling a snowball down a hill.  
At first, it’s slow and small, but each turn adds more snow and momentum.  
The early years look flat, but later growth dominates — the final stretch often adds more value than all previous years combined.

---

## Try it with your own numbers

Use the free [Compound Interest Calculator](/calculators/investment-growth) to project your savings growth.  
Adjust the interest rate, timeframe, and contributions to see how each affects your final balance.

> For a realistic view of **purchasing power**, choose an **after-inflation (“real”) return**.

---

## Common mistakes to avoid

- **Ignoring fees:** management or fund costs above 1% can significantly reduce compounding benefits.  
- **Pausing contributions:** missing months breaks the rhythm. Automate transfers to stay consistent.  
- **Chasing high returns:** steady, reliable growth compounds better than volatile bets.

---

## How to maximise compounding

- **Start early** – every extra year multiplies results.  
- **Reinvest earnings** – keep dividends or interest in the account.  
- **Increase deposits gradually** – even small annual rises compound strongly.  
- **Stay invested** – time in the market beats timing the market.

---

## The bottom line

Compound interest rewards patience and consistency.  
You don’t need a finance degree — just a plan, regular deposits, and time.

Start small, stick with it, and let compounding do the heavy lifting.

> “The best time to start was 20 years ago. The second-best time is today.”

---

**Next step:** explore the [Compound Interest Calculator](/calculators/investment-growth) and see how quickly your savings can grow.

---

## FAQs

**What is compound interest in simple terms?**  
It’s interest on both your original money and the interest that’s already built up.

**How often is interest compounded in Australia?**  
Usually **monthly** for savings accounts; some investments use quarterly or annual compounding. Check your product disclosure statement for details.

**Is compound interest taxable?**  
Yes. Interest from savings or investments is part of your **assessable income** and taxed at your marginal rate, unless held inside **superannuation**.

**Which is better — monthly or annual compounding?**  
Monthly or quarterly generally yields slightly higher returns, as interest is added more frequently.

**How can I calculate it easily?**  
Use the [Compound Interest Calculator](/calculators/investment-growth). It applies the formula automatically and shows your projected balance.

**Can compounding work against you?**  
Yes. With **debt**, compound interest accelerates what you owe if you don’t make repayments — especially on credit cards. Clear high-interest debts first before focusing on investing.

---

*Disclaimer: This article is general information only and does not constitute financial advice. Past performance is not a reliable indicator of future results.*


A plain-English explainer of compound interest with step-by-step examples, the core formula, and a free calculator to test your own numbers.

#savings

Savings Goal Calculator: How Much Should I Save Each Week?

Compound Interest Explained: How Your Money Grows (With Examples)