Savings Calculator
- Updated
- Formula shown
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Results
$5,000.00 plus $300.00 a month at 4.5% compounded monthly grows to $53,194.39 in 10 years
- Initial deposit
- $5,000.00
- Monthly deposits
- $36,000.00
- Interest
- $12,194.39
| Year | Deposits | Interest | Balance |
|---|---|---|---|
| 1 | $8,600.00 | $304.89 | $8,904.89 |
| 2 | $3,600.00 | $484.27 | $12,989.16 |
| 3 | $3,600.00 | $671.91 | $17,261.07 |
| 4 | $3,600.00 | $868.16 | $21,729.22 |
| 5 | $3,600.00 | $1,073.42 | $26,402.64 |
| 6 | $3,600.00 | $1,288.12 | $31,290.76 |
| 7 | $3,600.00 | $1,512.68 | $36,403.44 |
| 8 | $3,600.00 | $1,747.55 | $41,751.00 |
| 9 | $3,600.00 | $1,993.22 | $47,344.22 |
| 10 | $3,600.00 | $2,250.17 | $53,194.39 |
Savings rates change over time. The result assumes the rate stays the same for the whole period.
How to use the savings calculator
- Choose what you want to know: your future balance, the time to reach a goal, or the monthly deposit a goal needs.
- Enter what you already have saved and, depending on the question, your monthly deposit, your goal and the number of years.
- Enter the account's interest rate and how often it compounds. If the bank quotes an APY, choose annual compounding and enter the APY.
- Choose whether deposits go in at the start or the end of each month, then read the result and the yearly table.
Savings formulas
Monthly deposit for a goal: D = [G − S × (1 + i)n] × i ÷ [(1 + i)n − 1]
Months to a goal: n = ln[(G × i + D) ÷ (S × i + D)] ÷ ln(1 + i)
S is what you have saved now, D the monthly deposit, G the goal, n the number of months and i the interest rate per month. With monthly compounding, i is the annual rate ÷ 12. With any other compounding, i is the equivalent monthly rate, (1 + r ÷ m)m ÷ 12 − 1, so year-end balances match the bank's compounding exactly. These are the end-of-month versions; deposits at the start of the month earn one more month of interest each.
Worked example
You have $5,000 saved, add $300 a month, and earn 4.5% compounded monthly.
- Balance in 10 years: $53,194.39. You deposit $41,000, and $12,194.39 is interest.
- Time to reach $50,000: 114 months, or 9 years 6 months. Without interest it would take 12 years 6 months.
- Monthly deposit to reach $50,000 in exactly 10 years: $278.87.
Monthly savings needed for common goals
Starting from nothing, at 4% compounded monthly, deposits at the end of each month. The rate is an example, not a quote.
| Time | $10,000 | $25,000 | $50,000 | $100,000 |
|---|---|---|---|---|
| 3 years | $261.91 | $654.77 | $1,309.53 | $2,619.07 |
| 5 years | $150.83 | $377.08 | $754.16 | $1,508.32 |
| 10 years | $67.91 | $169.78 | $339.56 | $679.12 |
| 20 years | $27.26 | $68.16 | $136.32 | $272.65 |
Doubling the time more than halves the deposit, because interest does more of the work. Over 20 years, a $100,000 goal needs $272.65 a month, which adds up to $65,435 of deposits; interest supplies the rest.
Reading the results
The "interest earned" line shows how much of the final balance the bank paid you. Over a few years it is small and the goal is reached mostly by saving; over decades it becomes a large share. The goal modes round up to whole months, so the balance at the end can be slightly above the goal. The bar chart splits the final balance into what you put in up front, what you added each month and what interest added, which is a quick way to see whether a bigger deposit or more time would help more.
Tips for reaching a savings goal
- Automate the deposit. A transfer on payday is the easiest way to keep the monthly figure the calculator gives you.
- Rates on savings accounts change. Most are variable, so rerun the numbers when your rate moves. A CD fixes the rate for a term; see the CD calculator.
- Think about inflation for long goals. A goal 10 years away will cost more than it does today. The inflation calculator projects a future price.
- Tax may apply to interest. To see the effect of tax on interest, use the interest calculator.
- Check your deposits are protected. Most countries insure bank deposits up to a limit per person and per bank. Keep large balances within it.
Frequently asked questions
How much will I have if I save $300 a month?
It depends on the rate and time. Starting with $5,000 and adding $300 at the end of each month at 4.5% compounded monthly, you would have $53,194.39 after 10 years: $41,000 deposited and $12,194.39 of interest.
How long will it take to save $50,000?
With $5,000 already saved, $300 a month and 4.5% interest compounded monthly, it takes 114 months, or 9 years 6 months. Without any interest it would take 150 months, so interest saves about three years.
How much do I need to save each month to reach a goal?
Choose “How much to save each month” and enter the goal and time. To reach $50,000 in 10 years from $5,000 at 4.5% compounded monthly, you need to save $278.87 a month.
What interest rate should I use?
Use your account’s current rate. If the bank quotes an APY, choose annual compounding and enter the APY, because the APY already includes compounding. Savings rates usually change over time, so treat the result as an estimate.
Does it matter if I save at the start or end of the month?
Yes, a little. A deposit at the start of the month earns one more month of interest than one at the end. Over long periods the difference adds up, so choose the option that matches when your transfer happens.