Savings Calculator
See how your savings grow over time. Enter a starting balance, monthly contribution, annual interest rate, and number of years to find your ending balance and total interest earned.
Final Balance
$32,703.47
Total Contributions
$25,000.00
Interest Earned
$7,703.47
Educational tool only. Results assume a fixed interest rate compounded monthly. Actual savings account rates vary and are not guaranteed. Consult a financial advisor for personalized planning.
How Savings Growth Is Calculated
The calculator uses two formulas combined: the future value of the starting balance (lump sum) growing at compound interest, plus the future value of an annuity (regular monthly contributions also compounding monthly).
The Formula
FV = P × (1 + r/12)^(12t)
+ C × [(1 + r/12)^(12t) - 1] / (r/12)
Where:
FV = final balance
P = starting balance
C = monthly contribution
r = annual interest rate (decimal)
t = time in years
Example: $1,000 start + $200/month at 5% for 10 years:
FV = 1000 × (1.004167)^120
+ 200 × [(1.004167)^120 - 1] / 0.004167
FV ≈ $1,647 + $31,056 = $32,703FAQ
What interest rate should I use?
High-yield savings accounts currently offer around 4–5% APY. Traditional savings accounts offer 0.01–0.5%. Index funds have historically averaged about 7–10% annually, though this is not guaranteed. Use the rate that matches your actual account for the most accurate projection.
Does compounding frequency matter for savings?
This calculator compounds monthly, which matches most savings accounts. Daily compounding (used by some accounts) produces slightly higher results. The difference is small — at 5% for 10 years on $10,000, monthly vs daily compounding differs by about $12.
What is the difference between this and the compound interest calculator?
The compound interest calculator focuses on a lump-sum investment growing over time. The savings calculator adds regular monthly contributions — more realistic for how most people actually save. Both use monthly compounding.
Want the full explanation? Read the Savings Calculator Guide →