Savings Calculator
Calculate how your savings will grow over time with regular deposits and compound interest. Plan for your financial goals.
Savings Growth Formulas
Future Value
Total Contributions
Interest Earned
Deposit Frequency
Planning Your Savings
Whether you're building an emergency fund, saving for a vacation, or working toward a major purchase, our savings calculator helps you see how your money can grow over time. Regular deposits combined with compound interest can help you reach your financial goals faster than you might expect.
The key to successful saving is consistency. Even small regular deposits add up significantly over time when combined with compound interest.
Growth Projection
See how your savings grow month by month.
Interest Earned
Watch compound interest work for you.
Goal Planning
Calculate what you need to save for your goals.
Flexible Options
Compare different deposit frequencies and rates.
The Power of Consistent Saving
Small amounts saved regularly can grow into substantial sums over time. Here's how different savings habits compare.
| Monthly Savings | After 5 Years | After 10 Years | After 20 Years |
|---|---|---|---|
| $100 | $6,600 | $14,800 | $36,800 |
| $200 | $13,200 | $29,600 | $73,600 |
| $500 | $33,000 | $74,000 | $184,000 |
| $1,000 | $66,000 | $148,000 | $368,000 |
Where to Put Your Savings
Different savings vehicles offer different benefits. Choose based on your goals and timeline.
High-Yield Savings Account
Currently offering 4-5% APY (as of 2024). FDIC insured, fully liquid. Perfect for emergency funds and short-term goals. No risk, easy access, but rates can change.
Certificates of Deposit (CDs)
Lock in rates for 3 months to 5 years. Often 0.25-0.5% higher than savings accounts. Early withdrawal penalties apply. Good for money you won't need until a specific date.
Money Market Accounts
Similar to high-yield savings with check-writing ability. Slightly higher minimum balances. Good for savings you might need to access occasionally.
I Bonds
Government savings bonds that adjust for inflation. Currently paying 5%+ (varies). $10,000 annual purchase limit per person. Must hold 1 year minimum, 5 years for full interest.
529 Plans
Tax-advantaged accounts for education savings. Earnings grow tax-free when used for education. Many states offer tax deductions for contributions. Great for college savings.
Building an Emergency Fund
An emergency fund is your financial safety net. Here's how to build one effectively.
Target Amount
Aim for 3-6 months of essential expenses. Self-employed or single-income households should target 6-12 months. Calculate your monthly necessities (rent, utilities, food, insurance) and multiply.
Start Small
Begin with a $1,000 mini-emergency fund, then build to your full target. Having even a small buffer reduces financial stress and prevents turning to credit cards for unexpected expenses.
Automate It
Set up automatic transfers on payday. You won't miss money you never see. Even $50-$100 per paycheck adds up. Treat savings like a non-negotiable bill.
Keep It Accessible
Emergency funds belong in a high-yield savings account—liquid and safe. Don't invest emergency funds in stocks or tie them up in CDs. You need quick access in a crisis.
Maximizing Your Savings Rate
Getting the best return on your savings requires attention to interest rates and fees.
Compare Rates Regularly
Online banks typically offer 3-4x higher rates than traditional banks. Rates change frequently—review your accounts quarterly and switch if significantly better options exist.
Watch for Fees
Account fees can eat into your interest. Look for accounts with no monthly fees, no minimum balance requirements, and free transfers. Fees should never exceed interest earned.
Compounding Frequency
Daily compounding earns slightly more than monthly or quarterly. Most high-yield savings compound daily. The difference is small but adds up over time.
CD Laddering
If using CDs, spread money across different maturity dates (3, 6, 9, 12 months). This gives you regular access to funds while earning higher rates than savings accounts.
Frequently Asked Questions
How much should I save each month?
A common guideline is 20% of income (the 50/30/20 rule: 50% needs, 30% wants, 20% savings). If that's not possible, start with what you can and increase over time. Even 5-10% is better than nothing. Automate whatever amount you choose.
What's a good savings account interest rate?
As of 2024, high-yield savings accounts offer 4-5% APY. If your account pays less than 4%, consider switching to an online bank. Traditional banks often pay only 0.01-0.1%—a significant difference over time.
Should I pay off debt or save?
Generally, save a $1,000 emergency fund first, then attack high-interest debt (above 6-7%), then build a full emergency fund, then invest. Credit card debt (15-25% interest) should be paid before saving beyond a mini emergency fund.
How does compound interest help savings?
With compound interest, you earn interest on your interest, not just your deposits. $10,000 at 5% earns $500 the first year. The second year, you earn 5% on $10,500, and so on. Over 20 years, that $10,000 becomes $26,500 without adding another cent.
Are online banks safe for savings?
Yes, if they're FDIC insured (check FDIC.gov). FDIC insurance covers up to $250,000 per depositor, per bank. Online banks offer higher rates because they have lower overhead than traditional banks with physical branches.
When should I invest instead of save?
Save (in a savings account) for: emergency funds, goals within 1-3 years, and money you can't afford to lose. Invest (in stocks/funds) for: retirement, goals 5+ years away, and money you won't need for a long time. The stock market is too volatile for short-term needs.
Pro Tips
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