MMoneyToolsHub

Savings Calculator

Project how your savings grow over time with compound interest. See the impact of regular monthly deposits on your savings goals.

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Calculator

Final Balance

$29,297.64

Total Contributions

$25,000.00

Total Interest Earned

$4,297.64

Growth Over Time

Year 1: $3,463.69
Year 2: $6,002.32
Year 3: $8,618.16
Year 4: $11,313.57
Year 5: $14,090.96
Year 6: $16,952.83
Year 7: $19,901.74
Year 8: $22,940.35
Year 9: $26,071.37
Year 10: $29,297.64
Year 1Year 10

How It Works

Our savings calculator helps you estimate how your money grows when you consistently set aside a portion of your income. By factoring in an initial deposit, monthly contributions, and compound interest, you can see the real power of regular saving.

Compound interest means you earn interest not only on your original deposit but also on the interest that accumulates. Over time, this creates exponential growth that can significantly boost your savings.

Use this calculator to plan for major financial goals like a down payment on a house, a new car, a vacation fund, or simply building an emergency nest egg.

The Formula

A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]

A = Final amount, P = Initial deposit, r = Annual interest rate (decimal), n = Times compounded per year (12 for monthly), t = Time in years, PMT = Monthly deposit amount

Example

Scenario: You open a high-yield savings account with $1,000 and add $200 every month for 10 years at 3% APY.

Result: Your final balance would be approximately $29,254. You contributed $25,000 total, and earned $4,254 in interest.

Insight: Without the interest, you'd have only $25,000. The compound interest added over $4,200 to your savings — essentially free money from your bank!

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Frequently Asked Questions

What is a good savings account interest rate?
As of 2026, high-yield savings accounts offer rates between 3% and 5% APY. Traditional brick-and-mortar banks often offer less than 0.5%. Online banks typically provide the best rates.
How much should I save each month?
Financial experts recommend saving at least 20% of your income following the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and debt repayment.
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus accumulated interest, leading to faster growth over time.
How often is savings account interest compounded?
Most savings accounts compound interest daily or monthly and credit it to your account monthly. The more frequent the compounding, the faster your money grows.
Should I save or invest my money?
Savings accounts are best for short-term goals (under 5 years) and emergency funds. Investing is better for long-term goals since historically the stock market outpaces savings account interest rates.