Savings Calculator

How to use this savings calculator

Sample numbers are provided so you can see how the calculator works before entering your own details.

1. Initial Deposit: The amount of money you start with when opening your savings account. This is your principal, the foundation on which interest will build.
2. Interest Rate: The percentage your bank pays on your savings. This figure is applied to your balance and determines how much interest you’ll earn over time.
3. Years Deposited: The total number of years you plan to keep your money in the account. The longer the time, the more opportunity your savings has to grow with compounding.
4. Additional Deposits: The extra money you plan to add to your savings regularly. Enter the dollar amount of each additional contribution.
5. Deposit Frequency (Monthly/Yearly): Select how often you’ll make your additional deposits:
   1. Monthly: Adds your chosen amount every month, increasing growth through more frequent compounding.
   2. Yearly: Adds your chosen amount once a year, resulting in slower overall growth compared to monthly deposits.

How to read your savings calculator results

After you enter your savings details, the calculator shows you how your money could grow over time based on your inputs.

• Total savings amount (top number): This figure is the total value of your savings account at the end of the deposit period. It includes your initial deposit, all additional deposits and the interest earned.
• Growth chart: The line graph shows how your savings balance increases year by year.
  • X-Axis (Years): The number of years you plan to keep your money deposited.
  • Y-Axis (Balance): The dollar value of your account at each point in time.
  • Line Progression: The upward curve reflects your account balance growing through both contributions and compounding interest.
• Monthly vs. yearly deposits: If you selected monthly deposits, you’ll see faster growth because money is added and starts earning interest more frequently than yearly deposits.

Tip: Use these results to test different saving strategies. Try adjusting the deposit amount, frequency or interest rate to see how small changes can make a big impact on your long-term savings.

How do monthly contributions grow your savings?

When you add money every month, your savings don’t just grow from interest on your starting balance. Each new deposit also begins earning interest of its own.

• Early deposits work hardest: Money you put in during the first months has more time to grow, so it earns the most interest over the years.
• Later deposits still add up: Even though deposits made closer to the end have less time to compound, they still boost your balance.
• The snowball effect: Each month’s deposit builds on the last, and the interest you earn keeps getting added back in. Over time, the combination of steady contributions and compounding creates a powerful snowball effect.

Example (no math needed):

If you start with $10,000 and add $500 each month at a modest interest rate, after 10 years you’d have nearly $95,000, much more than your total deposits alone. The difference comes from compounding.

Tip: Automating your monthly deposits makes this effortless. Think of it like putting your savings on autopilot and letting time and interest do the heavy lifting.

When should you use this calculator?

This savings calculator is most helpful when you want to see how your money could grow over time and compare different saving strategies. Here are a few examples of how you can use it.

• Starting a savings plan: Enter your first deposit and planned contributions to see how quickly your balance could build toward your savings goal.
• Comparing savings strategies: Test monthly vs. yearly deposits, or adjust the interest rate, to find out which approach helps you reach your goals faster.
• Planning for financial goals: Estimate how much you’ll have saved for things like an emergency fund, home down payment or college costs.
• Building an emergency fund: Calculate how long it will take to set aside 3–6 months of living expenses, a common benchmark for financial security.
• Exploring the impact of interest rates: See how even small changes in your bank’s rate can make a big difference over several years.
• Checking progress toward a target: If you have a specific savings goal, use the calculator to test whether your current contributions are enough or if you should adjust them.

Tip: Try running multiple scenarios (e.g., increasing deposits, changing interest rates or adjusting time frames) to see how small changes today can make a big impact on your future savings.

Glossary of common savings terms

Principal

The original amount of money you deposit into a savings account or investment.

Interest Rate

The percentage a bank pays you for money in a savings account. This is often expressed as an annual rate but does not account for compounding.

Annual Percentage Yield (APY)

The true yearly rate of return on your savings, including the effects of compounding. APY makes it easier to compare savings accounts across institutions.

Compound Interest

The process of earning interest not just on your initial deposit (principal) but also on the interest that has already been added to your account.

Compounding Frequency

How often interest is calculated and added to your balance (daily, monthly, quarterly, annually). More frequent compounding means faster growth.

Maturity Date

For time deposits like certificates of deposit (CDs), this is the date when your funds, plus interest, become available without penalty.

Liquidity

How easily and quickly you can access your savings without paying fees or losing interest.

Minimum Balance Requirement

The smallest balance you must maintain in an account to avoid fees or qualify for the advertised interest rate.

FDIC Insurance

Protection for depositors. The FDIC insures deposits at banks, up to $250,000 per depositor, per institution.

Early Withdrawal Penalty

A fee charged if you take money out of a CD or other restricted account before the maturity date.

Automatic Savings Transfer

A feature that allows you to move money regularly from checking into savings, helping build balances over time.

Emergency Fund

A savings account specifically set aside for unexpected expenses like medical bills, car repairs, or job loss.

Related tools and savings calculators

Want to explore more ways to grow your savings? Try our CD maturity calculator or bank interest rates calculator to plan for a future purchase or our closing cost estimator to prepare for a home purchase.