What Is Deposit Planning?
Deposit planning is an essential process for anyone looking to save for a significant purchase, such as a home or investment property. It involves setting a savings goal, usually the amount needed for a deposit, and then creating and following a plan to accumulate that amount over time. Our deposit calculator is a free online tool designed to help with this process.
How Our Deposit Planner & Calculator Works
1. Input Your Starting Point
You begin by entering your current savings. This is the amount you have already set aside for your deposit.
2. Set Your Savings Goal
Next, you input the total amount you aim to save. This should reflect the deposit required for your intended property purchase or investment.
3. Regular Contributions
You then specify how much you plan to contribute to your savings regularly (e.g., weekly, fortnightly, monthly, or yearly). This amount should be realistic and sustainable over your savings period.
4. Interest Rate
If your savings will be held in an interest-bearing account, include the interest rate. The calculator will use this to estimate how your savings will grow over time with compound interest.
5. Projected Savings
Based on these inputs, the calculator will show how long it will take to reach your savings goal. This helps in setting a realistic timeline for your property purchase.
6. Adjustments and Scenarios
You can adjust any of the inputs (regular contributions, interest rate, total savings goal) to see how these changes affect your savings timeline. This feature allows you to plan for different scenarios and understand the impact of increasing your regular contributions or finding a savings account with a higher interest rate.
