Savings Calculator
Calculate growth with the Savings. Enter principal, rate, compounding frequency, and time to see total balance, interest earned, and year-by-year
Reviewed by Sahil, Senior Finance & Tax Editor · Editorial policy
Savings Calculator Formula
FV = P(1+r)^n + M×((1+r)^n - 1)/r
P = initial principal, M = monthly contribution, r = monthly interest rate (annual/12), n = total months. Compound interest grows exponentially over time.
Savings Calculator — Worked Examples
Example 1: $5,000 initial + $300/month at 4.5% for 10 years
Problem:P = $5,000, M = $300/month, annual rate = 4.5%, years = 10 (n = 120 months, r = 0.375%/month)
Solution:FV = $5,000 × (1.00375)^120 + $300 × ((1.00375)^120 - 1) / 0.00375 = $5,000 × 1.5669 + $300 × 150.99
Result:$7,835 + $45,297 = $53,132 | Contributions: $41,000 | Interest earned: $12,132
Example 2: $0 initial + $500/month at 7% for 20 years
Problem:P = $0, M = $500/month, annual rate = 7%, years = 20 (n = 240 months, r = 0.5833%/month)
Solution:FV = $0 + $500 × ((1.005833)^240 - 1) / 0.005833 = $500 × 521.25
Result:$260,625 | Total contributions: $120,000 | Interest earned: $140,625
Savings Calculator — Frequently Asked Questions
What is a good savings rate for a high-yield account?
High-yield savings accounts currently offer 4–5% APY (as of 2024–2025), compared to 0.01–0.5% at traditional banks. For long-term wealth building, broad market index funds have historically averaged 7–10% annually. Use a conservative rate for realistic projections.