💰 Savings Calculator
Calculate your future savings
How to Use This Calculator
Enter Initial Savings
Input your starting savings amount (if any). If you're starting from zero, enter 0.
Enter Monthly Contribution
Input how much you plan to save each month. This is the regular amount you'll contribute to your savings.
Set Interest Rate and Time
Enter the annual interest rate you expect to earn and the number of years you plan to save. Higher rates and longer time periods significantly increase your savings.
Review Results
See your projected future savings, total contributions, and interest earned. Use this to plan for goals and understand the power of compound interest.
Formula
FV = PV × (1 + r)ⁿ + PMT × [((1 + r)ⁿ - 1) / r]
Where:
• FV = Future Value
• PV = Present Value (Initial Amount)
• PMT = Monthly Payment (Monthly Contribution)
• r = Monthly Interest Rate (Annual Rate ÷ 12)
• n = Number of Months (Years × 12)
Example Calculation:
If you start with $1,000, save $500/month, earn 5% annual interest, for 10 years:
• Initial: $1,000 × (1.004167)¹²⁰ = $1,647
• Monthly contributions: $500 × [((1.004167)¹²⁰ - 1) / 0.004167] = $77,933
• Total future value: $79,580
• Total contributions: $1,000 + ($500 × 120) = $61,000
• Interest earned: $79,580 - $61,000 = $18,580
About Savings Calculator
A savings calculator helps you project how much your savings will grow over time with regular contributions and compound interest. Whether you're saving for retirement, a down payment, education, or any other financial goal, this calculator shows you the future value of your savings, how much interest you'll earn, and the impact of different savings strategies. Understanding compound interest is key to building wealth over time.
When to Use This Calculator
- Retirement Planning: Project retirement savings growth
- Goal Setting: Calculate savings needed for specific goals
- Budget Planning: Determine monthly savings needed
- Comparison: Compare different savings strategies
- Motivation: See the impact of consistent saving
Why Use Our Calculator?
- ✅ Compound Interest: Accurately calculates compound interest growth
- ✅ Future Value: See how much your savings will be worth
- ✅ Contribution Analysis: Understand the impact of regular contributions
- ✅ Goal Planning: Plan savings to reach your goals
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on the initial principal and also on accumulated interest from previous periods. This means your money grows faster over time because you earn interest on your interest.
What's a reasonable interest rate to expect?
Interest rates vary by investment type. Savings accounts typically offer 0.5-2%, CDs offer 2-4%, while stock market investments historically average 7-10% annually. Use realistic rates based on your investment strategy.
How important is starting early?
Starting early is crucial due to compound interest. Starting at 25 vs. 35 can mean hundreds of thousands of dollars difference in retirement savings, even with the same contributions. Time is one of your most powerful wealth-building tools.
Should I increase my monthly contribution or find a higher interest rate?
Both help, but increasing your contribution has a guaranteed impact, while higher interest rates come with more risk. Ideally, do both: maximize contributions while investing appropriately for your risk tolerance and timeline.