Savings Calculator
Calculate how your savings will grow over time with regular contributions and compound interest.
Plan your financial goals.
A savings calculator projects how much money you’ll have if you save a certain amount each month at a given interest rate. It’s the same math as compound interest — but framed around a goal: how much will I have for the down payment, the vacation, the wedding, the emergency fund?
Two Useful Modes
This calculator works two ways. Enter your initial deposit, monthly contribution, rate, and years, and it tells you the final balance. If you also enter a savings goal, it tells you whether you’ll reach it within your timeframe and, if so, when.
The Formula
If contributions are made monthly, the future value (FV) is:
FV = PV × (1 + r)^n + PMT × [((1 + r)^n − 1) ÷ r]
Where:
- PV = present value (your starting balance)
- PMT = monthly contribution
- r = monthly interest rate (annual rate ÷ 12)
- n = number of months
- FV = future value (final balance)
The first term grows your existing money. The second term grows your monthly contributions.
Solving for Time-to-Goal
If you have a target FV (your goal) and want to know when you’ll get there, the formula rearranges to:
n = log[(FV × r + PMT) ÷ (PV × r + PMT)] ÷ log(1 + r)
The calculator solves this numerically when you enter a goal.
Where to Park Your Savings
| Account Type | Typical Rate (2025-26) | Notes |
|---|---|---|
| Big-bank savings | 0.01% to 0.50% APY | Pay close to nothing — avoid for serious savings |
| High-yield savings (online) | 4.0% to 4.5% APY | Best balance of rate and access |
| 6-month CD | 4.5% to 5.0% APY | Locked but predictable |
| 12-month CD | 4.0% to 4.5% APY | Locked, slightly higher than savings |
| Money market funds | 4.0% to 5.0% yield | Brokerage account, easy access |
APY stands for Annual Percentage Yield — the actual return after compounding. CD stands for Certificate of Deposit — a deposit locked for a fixed term in exchange for a higher rate.
Worked Example
Goal: $20,000 home down payment. Starting balance: $5,000. Monthly contribution: $500. High-yield savings rate: 4.5% APY.
The math gets you to $20,000 in about 28 months — roughly two and a third years. Without interest, the same plan would take 30 months. The interest saves about 2 months on a 30-month timeline.
If you bumped contributions to $700/month, you’d hit the goal in about 21 months — over half a year faster.
What Actually Moves the Needle
- Monthly contribution is the single biggest lever for short-term goals (under 5 years). Interest compounds slowly over short timeframes.
- Time is the biggest lever for long-term goals (10+ years). Interest dominates.
- Rate matters more the longer the horizon. The difference between 0.5% and 4.5% on $20,000 over 5 years is hundreds; over 30 years, it’s tens of thousands.