Savings Calculator

Planning for Your Future: The Savings Growth Calculator

Whether saving for a down payment, retirement, education, or a rainy day fund, understanding how your savings can grow over time is motivating and essential for planning. This calculator uses the power of compound interest to project the future value of your savings based on your initial deposit, regular contributions, and estimated interest rate.

How to Use

1. Enter the **Starting Amount** you currently have saved (can be 0).
2. Enter the **Additional Contribution** amount you plan to save regularly.
3. Select the **Contribution Frequency** (Monthly or Annually).
4. Enter the estimated **Annual Interest Rate** (APR) you expect to earn (as a percentage).
5. Select how often the interest **Compounds** (e.g., Monthly for most savings accounts, Annually for some investments).
6. Enter the **Savings Duration** in years.
7. Click "Calculate Savings Growth".

The results show the projected Future Value (End Balance), the Total Principal Contributed (your money put in), and the Total Interest Earned over the period.

The Magic of Compound Interest

Compound interest means you earn interest not only on your initial principal but also on the accumulated interest from previous periods. Over time, this effect can significantly accelerate your savings growth compared to simple interest.

More frequent compounding (e.g., daily or monthly) generally leads to slightly higher returns than less frequent compounding (e.g., annually) for the same annual rate.

Important Notes

• Interest Rate is an Estimate:** The actual rate earned on savings accounts can fluctuate, and investment returns are not guaranteed and involve risk. Use a realistic rate for projections.
• Taxes:** Interest earned is often taxable. This calculator does not account for taxes.
• Inflation:** The calculator shows the future nominal value. The real purchasing power of that money will be lower due to inflation. Consider using an inflation calculator separately.