Savings vs Investing Calculator
Compare how much your money could grow in a savings account versus an investment portfolio, after fees and inflation, over any time period.
See Where Your Money Grows Faster
Enter your starting amount, monthly contributions, expected returns and fees. The calculator projects the future value of both options in nominal and inflation-adjusted terms.
Savings vs Investing Estimator
Compound growth over time shows the real cost of staying in cash.
Understanding The Maths
Key concepts for comparing savings and investing
Compound Growth
Future value = Start × (1 + r)^n + Contributions × ((1 + r)^n − 1) ÷ r, with r the monthly rate and n the number of months.
Fees Matter
Annual fees reduce your return directly. A 1% fee on a 7% return cuts long-term growth by roughly one seventh.
Inflation
Inflation erodes buying power. Compare real (inflation-adjusted) values to see what your money can actually buy.
Risk
Savings are stable and often protected, while investments fluctuate. Longer horizons help smooth the ups and downs.
Typical Savings vs Investing Returns
Long-run illustrative averages. Past performance does not guarantee future results.
| Asset | Typical Annual Return | Risk Level | Best For |
|---|---|---|---|
| Easy-access savings | 2% – 4% | Very low | Emergency fund |
| Fixed-term bonds | 3.5% – 5% | Low | Known short-term goals |
| Global stock index fund | 5% – 8% | Medium to high | Long-term growth |
| Property (net) | 3% – 6% | Medium | Diversification |
| Government bonds | 2% – 4.5% | Low to medium | Stability |
| Rule of Thumb | Cash for 0 – 3 years | Invest for 5+ years | Match risk to horizon |
Savings vs Investing Calculator FAQ
Answers to common questions about this calculator.
Over long periods investing has historically beaten savings, but with more risk and volatility. Saving is better for short-term goals and emergency funds.
A horizon of five years or more is generally recommended so you have time to recover from market downturns.
Many planners use 4% to 7% a year for diversified portfolios. Use a conservative figure and test several scenarios.
No. ISAs, pensions and other wrappers can change results, so consider your own tax position.