Savings Calculator

Finance

Last updated: July 11, 2026

See how your savings grow over time with regular contributions and compound interest. Plan your emergency fund, college savings, or retirement nest egg.

Initial Deposit ($)

Monthly Contribution ($)

Annual Interest Rate (%)

Time Period (years)

How to Use This Calculator

Enter your starting Initial Deposit amount.
Set how much you plan to save each month as a Monthly Contribution.
Enter the expected Annual Interest Rate for your savings account or investment.
Set the Time Period in years and click Calculate to see future value, total interest, and year-by-year growth.

Formula

FV = P × (1 + r/12)ⁿ + PMT × [((1 + r/12)ⁿ − 1) / (r/12)]

Where P = initial deposit, PMT = monthly contribution, r = annual interest rate (decimal), n = total months. Assumes monthly compounding.

Examples

Emergency Fund: $3,000 initial, $300/month at 4% for 2 years = $10,861. You earn $861 in interest on top of your $10,200 in contributions.

College Savings: $5,000 initial, $200/month at 6% for 18 years = $89,147. Your $48,200 in contributions generate $40,947 in interest.

Retirement Nest Egg: $10,000 initial, $1,000/month at 7% for 30 years = $1,219,971. Compound interest turns $370,000 in contributions into over a million dollars.

Frequently Asked Questions

How is compound interest different from simple interest?

Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus accumulated interest, so your money grows faster over time.

What interest rate should I use?

Use the expected annual return for your savings account or investment. A typical savings account offers 2–5%, while stock market index funds historically average 7–10%.

Does compounding frequency matter?

Yes. More frequent compounding (monthly vs. annual) yields slightly more interest. This calculator assumes monthly compounding for accuracy.

Should I include inflation?

For long-term planning, consider using the real interest rate (nominal rate minus inflation) to understand actual purchasing power.