Savings Calculator
Deduct your living costs, allocate savings between current and long-term accounts, and see compound-interest projections over 3 to 25 years.
As a contractor your income can fluctuate, making a disciplined savings strategy essential. This calculator helps you see exactly how much is left after living costs and lets you split the surplus between an accessible current account and a long-term compounding investment.
Monthly Budget
Enter your after-tax monthly income and recurring expenses
| Item | Monthly ($) | Annual ($) |
|---|---|---|
| Income | ||
| Monthly Take-Home Income | $120,000 | |
| Living Expenses | ||
| Rent / Mortgage | $30,000 | |
| Groceries & Household | $9,600 | |
| Transport | $4,800 | |
| Other Living Costs | $6,000 | |
| Total Living Expenses | $4,200 | $50,400 |
| Bills & Subscriptions | ||
| Utilities (power, water, gas) | $3,600 | |
| Insurance (health, car, home) | $4,200 | |
| Phone & Internet | $1,800 | |
| Subscriptions & Memberships | $1,200 | |
| Total Bills | $900 | $10,800 |
| Loan Repayments | ||
| Personal / Car Loan | $0 | |
| Credit Card Repayment | $0 | |
| Other Loan / HECS | $0 | |
| Total Loan Repayments | $0 | $0 |
| Available to Save | ||
| Monthly Surplus | $4,900 | $58,800 |
| Savings Allocation | ||
| Current Savings % | % | $1,960 |
| Long-Term "Don't Touch" % | 60% | $2,940 |
| Long-Term Growth Rate | ||
| Annual Interest / Return Rate | % | Compound annually |
Monthly Surplus
Current Savings
Long-Term Savings
Long-Term Savings Projection
Compound growth of your "don't touch" savings at 3.6% p.a.
| Year | Contributions | Interest Earned | Total Balance |
|---|
Frequently Asked Questions
Why split savings into current and long-term?
Current savings act as a buffer for short-term needs like tax bills, equipment purchases, and gaps between contracts. Long-term savings are invested for growth — compounding works best when you don't withdraw. Keeping them separate removes the temptation to dip into your future.
What interest rate should I use?
The default 3.6% reflects a conservative real return after inflation. High-interest savings accounts in Australia typically offer 4–5% nominal, while diversified index funds have historically returned 7–10% before inflation. Adjust the rate to match your investment vehicle.
How much should contractors save each month?
A common guideline is to save at least 20% of gross income — split between an emergency buffer (3–6 months of expenses) and longer-term wealth building. Contractors should aim higher because income is irregular.
Does this calculator account for tax?
No. Enter your after-tax (take-home) monthly income. Tax obligations should be set aside separately before you calculate disposable income.
How It Works
Enter Your Income & Expenses
Input your monthly income, living expenses, bills, and loan payments.
Set Your Savings Split
Choose what percentage goes to current savings vs long-term 'don't touch' savings.
View Growth Projections
See how your long-term savings grow with compound interest over 3–25 years.
Contractor Savings Guide
Learn how contractors can build financial resilience without a guaranteed salary.
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