Bills account calculator
Enter the bills you pay from your bills account. The calculator finds the fixed amount to transfer every month and how much must be on the account at the start of each month so no bill ever bounces.
Your bills
| Bill | Amount | Paid | First month | Remove |
|---|
- Transfer each month
- –
- Bills per year
- –
- Highest balance needed
- –
Bills per month and balance needed
- Bills
- Balance needed on the 1st
| Month | Bills | Needed on the 1st |
|---|
How the calculation works
The monthly transfer is simply the yearly cost of all your bills divided by 12. A 7,200 insurance paid once a year becomes 600 a month; a 1,800 electricity bill paid quarterly becomes another 600.
Because the bills do not arrive evenly, the account needs a buffer. For each month, the calculator looks ahead through the next twelve months and finds the largest gap between the bills still to come and the transfers still to arrive. That gap is the balance the account needs on the 1st, after that month’s transfer has landed.
If your account holds more than the balance needed, you can move the difference out. If it holds less, top it up once and the fixed transfer keeps it on track from then on.
Frequently asked questions
What is a bills account?
A bills account (or budget account) is a separate bank account used only for fixed bills such as rent, insurance, utilities and subscriptions. You move a fixed amount into it every month, and the bills are paid from it automatically.
Why is the balance needed so high in some months?
Right before a large yearly bill, the account must hold enough to pay it. The months leading up to it build the buffer, and the balance drops again once the bill is paid.
Should I add a safety margin?
Many people round the monthly transfer up a little. It covers price rises during the year and slowly builds a small reserve.
Put it in a budget
Annual Budget Plan keeps every bill on a 12-month plan and works out your transfers automatically. Free.