Savings Calculator
Calculate how much your savings will grow with regular monthly deposits. See your final balance, total deposits, and interest earned over time.
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Final Balance
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Total Deposits —
Interest Earned —
How to Use This Calculator
- Enter your Initial Deposit — your starting savings balance.
- Enter the Monthly Deposit — how much you add each month.
- Enter the Annual Interest Rate (APY) — check your bank's current rate.
- Set the Savings Period in years.
- See your projected Final Balance and total Interest Earned.
Formula
Future Value with Regular Deposits:
FV = P(1 + r/12)^(12t) + PMT × [(1 + r/12)^(12t) − 1] / (r/12)
- P = Initial deposit
- r = Annual interest rate (decimal)
- t = Time in years
- PMT = Monthly deposit
Example
Example: $5,000 initial deposit, $300/month, 4.5% APY, 10 years.
- Total Deposits: $5,000 + ($300 × 120) = $41,000
- Interest Earned: $13,782
- Final Balance: $54,782
Frequently Asked Questions
- APY (Annual Percentage Yield) reflects the real rate of return including compounding. APR (Annual Percentage Rate) is the simple interest rate without compounding. For savings accounts, APY is the number that matters most.
- As of 2024–2025, high-yield savings accounts offer 4–5% APY. Traditional bank savings accounts average only 0.4–0.6%. Online banks typically offer the best rates.
- Financial advisors recommend keeping 3–6 months of living expenses in an emergency fund. Beyond that, additional savings can be invested for higher returns through index funds or retirement accounts.
- If your debt interest rate exceeds your savings rate, pay off debt first. For example, paying off a 20% APR credit card always beats a 4.5% savings account. Keep a small emergency fund regardless.
- Most savings accounts compound interest daily and credit it monthly. High-yield savings accounts typically compound daily, which slightly increases your effective APY compared to monthly compounding.