Finance
Savings Calculator
Determine how your savings grow over time. Project future balances with customizable monthly deposits, annual interest rates, compounding schedules, and deposit timings.
How To Use The Projection
Use the ending balance as a planning target, then compare it with your goal amount and timeline. The most controllable inputs are starting balance, monthly deposit, and how long you keep saving.
Interest rate assumptions should match the account type. A cash savings account is usually more stable than an investment portfolio, but the rate can change over time.
Common Mistakes
Do not assume a promotional interest rate lasts for the full term unless the bank guarantees it. Re-run the calculator with lower rates to see a conservative case.
If the goal is in the future, remember inflation. A nominal savings balance may not buy the same amount later.
Compound Interest with Monthly Deposits
A = P * (1 + r/n)^(nt) + PMT * [((1 + r/n)^(nt) - 1) / (r/n)]Projects the future value of your initial savings (P) compounding at interest rate (r) over time (t), combined with monthly deposits (PMT) compounding periodically.
Examples
HYSA Growth Goal (10 Years)
Initial deposit of $5,000, monthly deposit of $200, 4.5% annual interest compounded monthly, end of period timing, for 10 years.
Result: Ending balance of $38,074.58. Total principal deposits of $29,000. Total interest earned of $9,074.58.
FAQ
How does compounding frequency affect my savings?
The more frequently interest compounds, the faster your balance grows. Daily compounding yields slightly higher earnings than monthly, which in turn grows faster than quarterly or annual compounding, due to earning 'interest on your interest' sooner.
What is the difference between beginning and end deposit timings?
Depositing at the beginning of the month allows that month's contribution to earn interest for the entire month. Depositing at the end of the month means your contribution is added after interest has already accrued for that period, resulting in slightly lower overall growth.
What are typical high-yield savings account rates?
Typical high-yield savings accounts (HYSAs) in recent years offer annual rates of 4% to 5.5%, compared to traditional banks which often pay less than 0.5% annual interest. Compounding makes HYSAs highly effective tools for long-term growth.
Important Note
Results are estimates for planning and education. They do not replace financial, tax, legal, or professional advice. Review assumptions before making decisions.