Norway BSU Calculator: Boligsparing for Ungdom Growth
Estimate how a Norwegian BSU (boligsparing for ungdom) grows from a starting balance plus regular monthly deposits at its high fixed rate — Norway's tax-favoured savings scheme for under-34s saving toward a first home.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year growth schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Future value | Total contributions | Total interest earned |
|---|---|---|---|
| 20k + 2k/mo · 4.5% · 5yr | $159,327.02 | $140,000.00 | $19,327.02 |
| 0 + 2.5k/mo · 4.5% · 8yr | $288,243.10 | $240,000.00 | $48,243.10 |
| 50k + 2k/mo · 4% · 10yr | $369,041.24 | $290,000.00 | $79,041.24 |
| 10k + 1.5k/mo · 5% · 6yr | $139,136.57 | $118,000.00 | $21,136.57 |
How This Calculator Works
Enter your current BSU balance, monthly deposit, the BSU interest rate, and the years saving. The calculator compounds the balance monthly and shows the projected value and the interest earned. BSU is designed for young people: it pays a higher-than-usual interest rate and gives an annual tax deduction on what you pay in, provided the money is ultimately used for a home (or kept under the scheme's rules).
The Formula
Future Value with Regular Contributions
P = starting amount, PMT = monthly contribution, r = monthly rate (annual ÷ 12), n = number of months
Worked Example
A 20,000 kr balance plus 2,000 kr a month for 5 years at 4.5% grows to about 159,327 kr, with roughly 19,327 kr of interest. BSU (boligsparing for ungdom — 'home saving for youth') is a Norwegian scheme for people under 34: deposits earn a preferential interest rate and qualify for an income-tax deduction (a percentage of the amount saved each year, up to an annual cap), as long as the savings are eventually used for buying or improving a home. There are annual and lifetime deposit limits.
Key Insight
BSU is one of the best-known financial perks for young people in Norway, combining a high savings rate with a tax break, and the rules determine its value. Eligibility is age-bound: you must be under 34 to open and pay into a BSU (you can keep an existing one a little beyond, but new deposits stop at the age limit). Two benefits stack: first, BSU accounts pay a markedly higher interest rate than normal savings accounts (banks offer it as a youth incentive), boosting growth; second, you get an annual income-tax deduction worth a percentage of what you deposit that year, up to the annual deposit cap — a direct reduction in tax, not just a deferral. The scheme has an annual deposit limit and a lifetime (total) limit on how much can be paid in, which this calculator doesn't enforce — so confirm your contributions fit the caps. The catch is the purpose restriction: the funds (and the tax benefit) are tied to housing — buying your first home, or in some cases home improvements — and withdrawing the money for anything else generally means repaying the tax deductions you've claimed. Because both the rate and the tax deduction are unusually generous, the common advice in Norway is to max out the BSU each year while eligible, even using it before other savings. This calculator gives a gross, constant-rate projection of the balance and omits the annual tax deduction (which effectively raises your real return) and the deposit caps; for your full picture, add the yearly tax saving, respect the annual and lifetime limits, and remember the housing-purpose condition attached to the benefit.
20% tax credit + high interest: the dual benefit of BSU
BSU (Boligsparing for Ungdom — Housing Savings for Youth) gives Norwegian residents under 34 two powerful benefits in one account: (1) a tax credit of 20% on annual deposits up to NOK 27,500 = max NOK 5,500 tax credit per year, and (2) interest rates typically 1-2 percentage points higher than ordinary savings accounts, often 4-6% in 2026.
Lifetime BSU contribution cap is NOK 300,000. At the maximum NOK 27,500 deposit per year, you reach the lifetime cap in just under 11 years. Many young Norwegians start BSU at 18 with a small deposit and ramp up as their income grows — common pattern is to fill BSU completely by age 28-30.
Concrete tax benefit example: a 25-year-old earning NOK 600,000 deposits the maximum NOK 27,500 in 2026. Income tax saving: 20% × 27,500 = NOK 5,500 — a direct credit on their tax bill, not a deduction. If they had borrowed at 5% to make this deposit (e.g. via line of credit), the tax credit alone covers more than the borrowing cost. Effective benefit: roughly 25-30% effective return on first-year deposit when combined with the high interest rate.
Age 34 cutoff and the 'must buy housing' requirement
BSU can only be OPENED before age 34 (the year you turn 34, technically). Once opened, you can continue depositing into it even after age 34, but new BSU accounts after 34 are not possible. Many Norwegians who turn 34 without having opened BSU miss the entire benefit permanently.
Withdrawal restriction: BSU money must be used for housing-related purchases — home purchase, home construction, home improvement/renovation, or paying down a mortgage on the borrower's own home. Withdraw for any other purpose, and the tax credits CLAIMED on previous deposits must be repaid (with interest charges). The Tax Administration tracks claimed credits via reporting between banks and Skatteetaten.
Practical strategy: even if you're not certain about buying a home in Norway, opening BSU before 34 is essentially a free option. If you do buy → benefit captured. If you don't, you can withdraw later by repaying the credits — a moderate cost. The downside of not opening BSU before 34 is much larger than the cost of not using it later.
Combining BSU with first-home loans
BSU savings count toward the equity requirement for first-home mortgages from Norwegian banks. Most banks require 15% equity for first homes (with regulatory exceptions for first-time buyers in some periods). A NOK 300,000 BSU balance can serve as part or all of the equity for a home up to NOK 2,000,000.
Combined with the First Home Loan (Førstegangslån) scheme that some banks offer to BSU holders, BSU savers often access preferential mortgage terms: slightly lower interest rates, higher loan-to-value tolerance, or fast-track approval. The specific benefits vary by bank.
Practical first-home strategy: max BSU during 20s (build NOK 300k), pair with personal savings outside BSU (in a high-interest account, ideally also tax-advantaged), and supplementary parental gift if available. By late 20s, many young Norwegians can put together NOK 500-700k in equity, enabling purchase of a NOK 3-4M apartment in Oslo or larger property in smaller cities. Without BSU, achieving the same equity position takes considerably longer.
BSU annual benefit by deposit amount and tax bracket (2026)
Total annual benefit = (deposit × 20% tax credit) + (deposit × interest rate). Assumes 5% BSU interest rate. Compare to a regular savings account at, say, 3% with 22% tax on interest.
| Annual deposit | Tax credit (20%) | Interest at 5% | Total first-year benefit | vs ordinary savings |
|---|---|---|---|---|
| NOK 10,000 | NOK 2,000 | NOK 500 | NOK 2,500 | +NOK 2,266 vs 3% taxed |
| NOK 20,000 | NOK 4,000 | NOK 1,000 | NOK 5,000 | +NOK 4,532 vs 3% taxed |
| NOK 27,500 (max) | NOK 5,500 | NOK 1,375 | NOK 6,875 | +NOK 6,232 vs 3% taxed |
After lifetime cap NOK 300,000 (reached in ~11 years at max contribution), interest still accrues at the BSU rate but no further tax credit. BSU effectively pays 25-30% real return on first-year contributions for high-tax-bracket Norwegians.
Frequently Asked Questions
How is BSU growth calculated?
Your balance and monthly deposits compound at the BSU interest rate (annual rate ÷ 12 per month). 20,000 kr plus 2,000 kr/month for 5 years at 4.5% grows to about 159,327 kr, with roughly 19,327 kr of interest — before counting the separate annual tax deduction.
What is BSU?
Boligsparing for ungdom ('home saving for youth') — a Norwegian scheme for people under 34 that combines a higher-than-usual savings interest rate with an annual income-tax deduction on deposits, provided the savings are used toward a home. It's designed to help young people build a first-home deposit.
Who can open a BSU?
People under 34. You must be within the age limit to pay into a BSU; new deposits stop once you pass it, though an existing balance can be kept under the scheme's rules. The benefits — the high rate and the tax deduction — are aimed squarely at young savers building toward a home.
What's the tax benefit of BSU?
An annual income-tax deduction worth a percentage of what you deposit that year, up to the annual deposit cap — a direct cut in tax, not just a deferral. This calculator shows only the interest growth and omits the deduction, which effectively raises your real return beyond the figure shown.
Can I use BSU money for anything?
Generally no — the funds and the tax benefit are tied to housing (buying a first home, or in some cases improvements). Withdrawing the money for another purpose usually means repaying the tax deductions you've claimed. There are also annual and lifetime deposit limits the scheme imposes.
References & Authoritative Sources
- Skatteetaten — Norwegian Tax Administration — BSU — Boligsparing for ungdom · consulted May 31, 2026 · Norwegian tax authority — annual deposit cap, lifetime cap, tax credit rules
- Skatteloven — § 16-10 — Statutory basis for BSU tax credit · consulted May 31, 2026 · Income Tax Act — BSU provisions and tax credit mechanics
- Norges Bank Finanstilsynet — Bank regulation and BSU provider supervision · consulted May 31, 2026 · Financial supervisory authority — BSU provider authorization, interest rate transparency
Related Calculators
Methodology & Review
The future value compounds a starting balance plus a fixed monthly deposit at the annual rate, compounded monthly. It assumes a constant rate and end-of-month deposits, and does not enforce the BSU annual or lifetime deposit limits, the age limit, or model the separate tax deduction the scheme gives on contributions.
Updated