Savings Calculator — Plan Your Savings Growth
Calculate how your savings will grow over time with regular deposits and compound interest. See also Compound Interest Calculator and Investment Calculator.
How the Savings Calculator Works
The savings calculator projects the future value of your savings based on an initial deposit, regular monthly contributions, a fixed annual interest rate, and a chosen compounding frequency. It simulates month-by-month growth — adding your contribution at the start of each month, then applying interest according to the compounding schedule. This gives you a realistic picture of how your savings will accumulate over time, including the powerful effect of compound interest on regular deposits.
Savings Growth Formula
FV = P × (1 + r/n)^(n×t) + PMT × [((1 + r/n)^(n×t) − 1) / (r/n)]
Where:
FV = Future value of savings
P = Initial deposit (principal)
PMT = Regular monthly contribution
r = Annual interest rate (decimal)
n = Compounding frequency per year
t = Time in years
Example Calculation
Initial Deposit: $5,000
Monthly Contribution: $300
Annual Interest Rate: 4.5%
Time Period: 10 years
Compounding: Monthly
Total Contributions: $5,000 + ($300 × 120) = $41,000
Future Value ≈ $50,564
Total Interest Earned ≈ $9,564
Savings Growth Reference Table
| Initial | Monthly | Rate | 5 Years | 10 Years | 20 Years |
|---|---|---|---|---|---|
| $1,000 | $100 | 3% | $7,646 | $15,093 | $34,075 |
| $5,000 | $200 | 4% | $18,326 | $34,559 | $78,514 |
| $5,000 | $300 | 4.5% | $25,413 | $50,564 | $118,630 |
| $10,000 | $500 | 5% | $44,677 | $88,124 | $216,024 |
| $0 | $500 | 4% | $33,149 | $73,625 | $183,194 |
| $25,000 | $0 | 5% | $32,095 | $41,103 | $67,297 |
Frequently Asked Questions
What is the best compounding frequency for savings?
Daily compounding yields the highest return, but the difference between daily and monthly compounding is minimal. Most high-yield savings accounts compound daily. The bigger factor is the interest rate itself and how consistently you contribute.
How much should I save each month?
A common guideline is to save at least 20% of your after-tax income (the 50/30/20 rule). However, any amount is better than nothing. Use this calculator to see how even small monthly contributions grow significantly over time thanks to compound interest.
What is a realistic savings interest rate?
High-yield savings accounts typically offer 4-5% APY (as of 2024). Traditional savings accounts may offer 0.01-0.5%. CDs can offer 4-5.5% for fixed terms. The rate you use should match the type of savings vehicle you plan to use.
Does this calculator account for taxes?
No. Interest earned in taxable accounts is subject to income tax. For tax-advantaged accounts (like IRAs or 401(k)s), the growth shown here is more accurate. For taxable accounts, your actual after-tax return will be lower.
What is the difference between APY and APR?
APR (Annual Percentage Rate) is the simple interest rate without compounding. APY (Annual Percentage Yield) includes the effect of compounding. A 4.5% APR compounded monthly equals approximately 4.59% APY. Savings accounts typically advertise APY.