What this website is for

This website is intended to help you model the short to medium term impact of different financial choices on your overall wealth. Often its easy to imagine the near term impact of how a higher (or lower) salary might make you richer (or poorer) month to month, it's generally much harder to imagine the impact of this on your wealth if you compound savings over time.

Disclaimer: These calculations are illustrative only, always consult a qualified financial advisor when making important financial decisions.

How the model works

The model takes incremental savings and allocates them to the highest return accounts that you have said you have. For example, let's imagine you have three accounts: (1) a current account returning 1% interest, (2) an investment account you expect to return 8%, and (3) a credit card with 18% interest. In this case if you were saving £100 a month it would allocate those savings to pay down the credit card debt as this would represent the highest marginal return. Similarly if you were overspending by £100 it would take that £100 from your current account as this is the cheapest source of funding.

Note at the moment the model only allocates marginal savings, it doesn't reallocate balances between accounts. For example, if you have £1000 in a current account earning 1% interest and a credit card with a balance of £500 charging you 18% interest you would be better off moving the £500 in your current account to pay off your credit card. However, the model only allocates incremental savings it doesn't reallocate between the accounts that you have inputted. We did this to keep the model simple, note you can always play around with the balances in different accounts when you're setting up the model and see how it changes the outcome.

Assumptions and methodology


Links to applicable tax rates