Savings Calculator
See how your savings grow with regular contributions and compound interest.
Year-by-Year Growth
| Year | Start Balance | Contributions | Interest | End Balance |
|---|
What is a Savings Calculator?
A savings calculator projects how much money you will have in the future based on your initial deposit, regular contributions, interest rate, and time. It demonstrates the power of compound interest.
How to Use This Calculator
- Enter your starting balance and how much you plan to contribute each month.
- Enter the annual interest rate you expect to earn and the number of years.
- Select how often interest compounds: monthly, quarterly, yearly, or daily.
- Click Calculate to see your future balance and a year-by-year growth table.
Frequently Asked Questions
How does compounding frequency affect savings?
More frequent compounding leads to slightly higher returns because interest is earned on interest more often. The effect is most noticeable over long periods.
What is a realistic interest rate?
High-yield savings accounts currently offer 4-5%. Long-term stock market averages are around 7-10% before inflation. Use a rate appropriate for your actual savings vehicle.
Should I include taxes?
Interest earned in standard savings accounts is taxable. For a conservative estimate, you can reduce your interest rate by your marginal tax rate.
Can I reach my goal faster by contributing more?
Yes, increasing contributions has a larger impact than small interest rate changes. Regular, consistent deposits are the most reliable way to grow savings.