05.What you can earn
The table below estimates what a First Home Saver Account will account will grow to, based on different savings amounts and a 4% interest rate (before tax) and other important assumptions. For a more detailed calculation, go to the ASIC calculator.
First Home Saver Account approximate growth assuming 4% average interest per annum
| First Home Saver Account approximate growth assuming 4% average interest per annum |
| Your annual savings ($) |
1000 |
2000 |
3000 |
4000 |
5000 |
6000 |
7000 |
8000 |
9000 |
10000 |
| Year 1 |
1,204 |
2,408 |
3,612 |
4,816 |
6,020 |
7,054 |
8,088 |
9,122 |
10,156 |
11,190 |
| Year 2 |
2,449 |
4,898 |
7,347 |
9,736 |
12,245 |
14,348 |
16,451 |
18,554 |
20,657 |
22,760 |
| Year 3 |
3,736 |
7,472 |
11,209 |
14,945 |
18,681 |
21,890 |
25,098 |
28,307 |
31,516 |
34,724 |
| Year 4 |
5,067 |
10,134 |
15,202 |
20,269 |
25,336 |
29,688 |
34,040 |
38,391 |
42,743 |
47,095 |
| Year 5 |
6,444 |
12,887 |
19,331 |
25,774 |
32,218 |
37,751 |
43,285 |
48,819 |
54,352 |
59,886 |
| Year 6 |
7,867 |
15,733 |
23,600 |
31,466 |
39,333 |
46,089 |
52,845 |
59,601 |
66,356 |
73,112 |
| Year 7 |
9,338 |
18,676 |
28,014 |
37,352 |
46,690 |
54,710 |
62,729 |
70,749 |
(A) |
(A) |
| Year 8 |
10,860 |
21,719 |
32,579 |
43,438 |
54,298 |
63,624 |
72,950 |
(A) |
(A) |
(A) |
| Year 9 |
12,433 |
24,866 |
37,298 |
49,731 |
62,164 |
72,841 |
(A) |
(A) |
(A) |
(A) |
| Year 10 |
14,059 |
28,119 |
42,178 |
56,238 |
70,297 |
(A) |
(A) |
(A) |
(A) |
(A) |
| |
Assumptions
- Interest rates and your annual savings amount don't change over the period of your investment (4 years+).
- All contributions you make are at the start of the year so they earn interest for the full year.
- The government contribution is credited to the account at the end of the financial year and immediately begins to accrue interest in the next year.
- Interest is calculated and compounded annually. Many institutions will compound interest monthly or quarterly, meaning the account earns more interest.
Table note
(A) The balance is capped at $75,000. Once the cap is reached, you can’t make any further contributions, however, interest and any outstanding government contribution will still be credited to the account. The amount of the cap is supposed to be increased in $5000 increments in line with inflation in future years.