💰 Simple Savings Calculator
Calculate your savings growth over time
Starting savings amount (optional)
How to Use This Calculator
Enter Initial Amount (Optional)
Input your starting savings amount if you already have money saved. If you're starting from zero, enter 0 or leave blank.
Enter Monthly Contribution
Input how much you plan to save each month. This is the regular amount you'll contribute to your savings over time.
Set Interest Rate and Time
Enter the annual interest rate you expect to earn (default 5%) 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 your savings 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 Simple Savings Calculator
A simple savings calculator helps you project how much your savings will grow over time with an initial amount (if any), regular monthly contributions, and compound interest. This calculator shows you the future value of your savings, how much you'll contribute in total, and how much interest you'll earn. It's a straightforward tool for understanding how consistent saving and compound interest can help you reach your financial goals.
When to Use This Calculator
- Savings Planning: Plan how much you'll save over time
- Goal Setting: Set realistic savings goals
- Budget Planning: See the impact of regular contributions
- Compound Interest: Understand how compound interest works
- Motivation: See how consistent saving pays off
Why Use Our Calculator?
- ✅ Simple Interface: Easy-to-use calculator with clear inputs
- ✅ 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
- ✅ 100% Free: No registration or payment required
Tips for Successful Saving
- Start Early: The earlier you start, the more compound interest works in your favor
- Save Regularly: Consistent monthly contributions are key to building wealth
- Automate Savings: Set up automatic transfers to ensure consistency
- Increase Over Time: As income grows, increase your savings rate
- Choose Appropriate Investments: Invest according to your timeline and risk tolerance
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. It's one of the most powerful tools for building wealth.
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 over long periods. Use realistic rates based on your investment strategy and risk tolerance.
How important is the monthly contribution amount?
Monthly contribution amount is crucial. Even small increases in monthly contributions can lead to significantly larger future values over time due to compound interest. For example, increasing from $500 to $600 per month over 20 years can add tens of thousands of dollars to your savings.
Should I focus on increasing contributions or finding higher returns?
Both help, but increasing contributions has a guaranteed impact, while higher returns come with more risk. Ideally, do both: maximize contributions while investing appropriately for your risk tolerance and timeline. Start with what you can control (contributions) and then optimize returns.