Simple Savings Calculator
Feb 5, 2025
Use our savings calculator to plan your financial goals. Calculate how your savings could grow with different deposit amounts, interest rates and time periods.
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How to use this savings calculator
Our savings calculator helps you map out your financial goals when you enter:
- Your starting amount (initial deposit)
- Your planned monthly savings contribution
- Your time horizon in months or years
- Your expected interest rate (APY)
The calculator will show you the total savings at the end of the time period, how much you’ll contribute in total and the interest you’ll earn.
Quick definitions to know
- Initial amount
- This is the starting amount of your investment, or how much you can initially contribute to the account. Whether you have $100 or $10,000 to contribute, your initial amount is crucial to your investment's growth.
- Monthly deposit
- The monthly deposit is the amount you can contribute to the growth of your investment each month. Decide on this amount according to your monthly budget. Tinker with the amount to see how higher monthly deposits can boost your investment growth over time.
- Annual interest
- Estimate the rate you'll earn on your investment by checking our rate tables. You can find the best rates on certificates of deposit, savings accounts, and money market accounts. If you already know what you'll be earning, enter the interest rate. Make sure to specify whether interest will be compounded monthly, quarterly, semiannually or annually.
- Number of years
- This is the number of years your investment has to grow. For example, if you're 30 years old, and you plan to retire at age 65, your IRA has 35 years to grow. If you're purchasing a 5-year CD, your investment has 5 years to grow. Longer time frames equate to larger investment growth.
How to compare different savings account options
When choosing where to keep your savings, several account types offer different benefits.
- Traditional savings: A savings account that’s at lower rates than other interest-bearing financial products. Savings accounts generally have variable APYs.
- High-yield savings: A high-yield savings account usually has a yield that’s at least a few times higher than the national average APY. Savings accounts generally have variable APYs.
- CDs: Certificates of deposit (CDs) generally have fixed APYs and they generally have set terms. While early withdrawal penalties apply, CDs can be ideal for savings you won't need to access immediately.
- Money market account: A money market account is a type of savings deposit account that might have check-writing privileges. Money market accounts generally have variable APYs.
Understanding your savings potential
Time and consistency are your biggest allies when saving money.
Starting amount matters, but regular deposits make a bigger difference over time. For example, starting with $1,000 and adding $200 monthly at a 4.5% APY will grow to $14,644.53 in five years. Without the monthly contributions, your ending balance would be only $1,246.18.
Interest rates significantly impact your long-term results. A $10,000 deposit with no additional contributions earning 1% APY will grow to $11,046.22 in five years. The same amount at 4.5% APY grows to $15,529.69 – almost $4,500 more in interest earnings.
The longer you save, the more your money can grow, thanks to compounding interest.
How to reach your savings goals
Whether you're saving for a down payment, emergency fund or retirement, having a clear, specific savings goal helps you stay motivated and track progress.
Make saving automatic by setting up direct deposit or automatic transfers from checking to savings. The 50/30/20 budgeting rule suggests saving 20% of your income, but start with what's manageable for you and increase it over time.
Lastly, you may want to consider a mixed approach using different account types. Keep emergency funds in high-yield savings for easy access, while longer-term savings might earn more in CDs or investment accounts.