Savings Calculator

Name: Simple Savings Calculator
Item: Simple Savings Calculator
Author: Nathan Paulus

Use MoneyGeek's free savings calculator to estimate your future savings balance. Enter your initial deposit and contribution amounts, contribution frequency and other details to see how your money could grow over time.

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Simple Savings Calculator

By Nathan Paulus

Edited by Venus Zoleta

Updated: November 29, 2024

Advertising & Editorial Disclosure

How to Use MoneyGeek’s Savings Calculator

To use our savings calculator, enter your savings plan details: your starting balance, how much you want to save regularly, how often you’ll add funds, your expected interest rate and how often the interest is calculated. Adjust these numbers to understand how they affect your total savings over time.

The calculator will generate a graph showing how your money grows over time by combining your savings and the interest it earns. For example, saving more frequently or for a longer time can help you reach your goals faster. You can also test different interest rates and other variables to see how even small adjustments can make a big difference and find the best options for your savings.

1
Enter your starting balance
This is the amount you've already saved. The larger your starting balance, the more interest you can earn over time. Even if you start with a smaller amount, regular contributions can help your savings grow steadily.
2
Set your contribution amount and frequency
Decide how much you want to add to your savings and how often — monthly or annually. Adding money regularly helps your savings grow because every deposit increases the amount that earns interest. Use the calculator to see how small adjustments to your contributions can make a big impact.
3
Select your time period
Choose how long you want to save. The longer you save, the more your money grows because it has more time to earn interest. Longer timeframes show how consistent saving can increase your total balance.
4
Input the annual interest rate
The interest rate determines how much your money will increase each year. A higher rate means your savings will grow faster. Choose a realistic rate based on your account type — such as a standard or high-yield savings account (HYSA) — to see how much you could save.
5
Choose your compounding frequency
Compounding means adding interest to your savings so that it can earn even more interest. The more often interest is added, the faster your money grows. Try different options, like monthly or yearly compounding, to see the difference.

How to Read the Results

After the calculation, you’ll see three main results:

Total balance: The total amount you've saved
Total principal: The amount you’ve personally added to your savings
Total interest: How much you’ve earned from interest

A graph shows how your balance grows each year, making it easy to understand the difference between your contributions and the interest earned. Use this information to monitor your progress and adjust your savings plan as needed.

SAMPLE CALCULATION

Imagine you start saving with $5,000, plan to save $200 each month, choose a 5% annual interest rate and select monthly compounding over 10 years.

With these details, the calculator shows a total savings of about $39,292 after 10 years. This includes $29,000 from your contributions and roughly $10,292 in interest earned.

The graph illustrates how your savings grow each year, with your regular contributions and interest adding up over time. Even small, consistent savings can lead to significant growth.

Savings Account Options

When considering your savings strategy, explore different types of bank accounts to choose the best option for your financial goals. Each account type offers unique features — from accessibility and flexibility to varying interest rates and growth potential — that can influence your projected savings growth.

Account Type	Overview	Impact on Savings Growth	Considerations
Traditional Savings Accounts	Simple and accessible, with average rates around 0.45% APY	Suitable for steady growth over time but better for short-term goals	Lower rates mean slower growth but offer easy access to funds.
High-Yield Savings Accounts	High rates, often exceeding 4% APY	Faster growth, ideal for building savings quickly	Accounts may require a minimum balance to get the best rates.
Certificates of Deposit (CDs)	Fixed rates up to 6% APY, depending on the term	Guaranteed growth over a specific period, great for long-term goals	Early withdrawal may result in penalties, so plan carefully.
Money Market Accounts	Slightly higher rates than traditional accounts, averaging 0.61% APY	Balances growth and accessibility for medium-term savings	Accounts may have transaction limits or minimum balance requirements.

WHY APY MATTERS IN SAVINGS GROWTH

Annual percentage yield (APY) shows how much interest you’ll earn in a year, including compounding. It’s a more accurate way to measure how your money will grow than just looking at the interest rate.

A higher APY means your savings will grow faster, especially with frequent compounding. For example, a high-yield savings account with 4.75% APY can earn you hundreds more in interest than accounts with lower rates.

Using the Calculator for Your Savings Goals

Use our calculator to plan for your savings goals, whether it's building an emergency fund, saving for retirement or making a big purchase. Set clear targets, calculate timelines and adjust contributions to stay on track and meet your financial objectives.

Emergency fund planning

An emergency fund provides financial stability by covering three to six months of living expenses in case of unexpected events, like medical bills or job loss. With the calculator, you can plan how to build an emergency fund by determining a realistic monthly savings amount and estimating how long it will take to reach your goal. This keeps you motivated and helps align your savings with your budget and timeline.

Saving for large purchases

Big financial goals, like buying a home or car, require careful planning to stay on track. Our calculator lets you set a target amount, timeframe and monthly contributions, showing exactly how much you need to save. Tracking your progress with this tool keeps you focused and helps avoid unnecessary debt.

Building retirement savings

The sooner you start saving for retirement, the more your money can grow. The calculator shows how monthly or yearly contributions build up over time and lets you experiment with savings amounts to see how they affect your future balance. This makes it easy to plan for retirement and adjust your savings as your goals change.

Children’s education savings

Planning for education expenses early can make a big difference. The calculator helps you estimate how much to save for tuition by setting a timeframe and regular contribution amount. As your child gets closer to college, you can update your plan to stay on track and adjust for changes in costs or your finances.

Savings Calculator FAQ

Discover how you can make the most of the savings calculator with these answers to frequently asked questions. Gain clarity on topics like monthly contributions, inflation and tracking your savings growth over time.

Why use a savings calculator?

A savings calculator gives you a clear projection of your future balance by adjusting factors like contributions, interest rates and compounding. Use it to test different saving strategies, set realistic goals and plan effectively for milestones — whether you’re building an emergency fund, buying a home or saving for retirement. This tool helps you make informed choices to maximize your savings potential.

How much should I put in savings each month?

The amount you save each month depends on your goals, income and expenses. Financial advisors often recommend setting aside 15% to 20% of your income, but the calculator can help you determine a monthly target that aligns with your financial situation and objectives.

How does inflation affect my savings over time?

Inflation reduces the purchasing power of money, meaning your savings might buy less in the future. Although the calculator doesn’t account for inflation directly, consider options with higher returns — such as high-yield savings accounts (HYSAs) — to help offset inflation’s impact on your savings.

What’s the best way to stay consistent with my savings goals?

Setting up automated transfers to your savings account each month can make it easier to stay on track. Regularly reviewing your progress with the calculator can also help you maintain momentum, explore new ways to save money and adjust as your financial situation changes.

How can I use this calculator to see how much my savings will grow?

Enter your starting balance, monthly contributions, interest rate and compounding frequency to get a projection of your future balance. The calculator shows how consistent contributions and compounding can accelerate growth over time, giving you a clear view of your savings potential.

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About Nathan Paulus

Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.

Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.

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