Savings Calculator
Calculate how your savings will grow over time with regular deposits and compound interest.
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How to Use This Calculator
- Enter your initial deposit amount (starting balance)
- Input how much you plan to save each month
- Enter the annual interest rate (APY) of your savings account
- Specify the time period in years you'll be saving
- Click 'Calculate' to see your future savings
- Review total deposits, interest earned, and final balance
Formula
FV = PV(1 + r)^n + PMT × [((1 + r)^n - 1) / r], where FV = future value, PV = initial deposit, PMT = monthly deposit, r = monthly interest rate, n = number of months
Frequently Asked Questions
How much should I save each month?▼
The 50/30/20 budget rule suggests allocating 20% of your after-tax income to savings and debt repayment. However, the ideal amount depends on your financial goals, living expenses, and income level. Start with what you can afford and increase gradually.
What is a good interest rate for a savings account?▼
As of 2024, high-yield savings accounts offer 4-5% APY, while traditional banks often offer 0.01-0.50%. Online banks typically offer better rates due to lower overhead costs. Shop around for the best rates and consider factors like fees and accessibility.
Should I save or invest my money?▼
It depends on your timeline and goals. For short-term goals (under 5 years) or emergency funds, use savings accounts for safety and liquidity. For long-term goals (5+ years), investing typically offers higher returns but comes with more risk.
How much should I have in emergency savings?▼
Financial experts recommend saving 3-6 months of living expenses in an easily accessible account. If you have irregular income or are the sole earner, aim for 6-12 months. This provides a buffer for job loss, medical emergencies, or unexpected expenses.