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🏦 Savings Calculator

Calculate how your savings grow over time with regular contributions and compound interest. See your future balance, total contributions, and interest earned year by year.

Savings Formula

FV = P×(1+r/n)^(n×t) + PMT×((1+r/n)^(n×t)−1)/(r/n)

Where P = initial deposit, r = annual rate, n = compounding periods/year, t = years, PMT = monthly contribution.

How to Use This Calculator

  1. 1
    Enter Initial Deposit
    Start with whatever you have saved today — even $0 works.
  2. 2
    Add Monthly Contribution
    Enter how much you plan to add each month consistently.
  3. 3
    Set Rate & Time
    Enter your expected annual interest rate and how many years you will save.
  4. 4
    Choose Compounding
    More frequent compounding means slightly more interest. Monthly is most common for savings accounts.

Real-World Example

Start with $1,000, contribute $200/month at 5% APY (monthly compounding) for 10 years.

Total contributions = $1,000 + ($200 × 120) = $25,000
Future Value = $31,671
Interest earned = $6,671

Frequently Asked Questions

Compound interest means you earn interest on your interest. Each period, your interest is added to your balance, so the next period you earn interest on a larger amount. Over time this creates exponential growth.

More frequent compounding is always better for savers. Monthly compounding earns slightly more than annual. The difference is small for most savings rates but adds up over decades.

High-yield online savings accounts offer 4-5% APY. CDs offer 4.5-5.5%. Money market accounts are similar. Standard bank savings often pay under 0.5%, so shopping around matters significantly.

Starting from $0, saving $1,000/month at 7% return takes about 30 years. At $2,000/month it takes about 23 years. Starting earlier and investing in higher-return assets dramatically shortens the timeline.

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