Savings Calculator
Estimate the future value of your savings with interest, contributions, and tax considerations
Results
| Year | Deposit | Interest | Ending balance |
|---|
| Month | Deposit | Interest | Ending balance |
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About Savings Accounts
People save for various reasons such as for big purchases, including homes and new cars. Also, saving can help prepare for things in the future, such as college tuition, marriages, vacations, or retirement. Whatever the reason for saving, not planning for these events beforehand can result in poor financial outcomes.
Savings Accounts
In the U.S., savings accounts are bank accounts mostly insured by the Federal Deposit Insurance Corporation (FDIC) with the ability to earn interest on deposited funds (savings). They can be opened at most banks, credit unions, or other financial institutions, but will vary in traits such as synergy with checking accounts of the same institution, annual percentage yield (APY), and minimum balance requirements.
Contributions
When deciding how much to contribute towards savings accounts, there are several general guidelines that can help:
- Emergency Fund Rule – Have enough in savings to cover at least three to six months’ worth of living expenses
- 10% Rule – Set aside 10% of each paycheck to place into savings
- 50-30-20 Rule – 50% of income for necessities, 30% for luxuries, 20% for debt/savings
Saving Too Much?
There are generally no limits as to how much can be deposited into savings accounts. Just keep in mind that for any accounts within the same financial institutions, only amounts that are $250,000 or less are insured by the FDIC.
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How to Use the Savings Calculator
- Enter Your Initial Deposit
- Input the amount of money you currently have saved (e.g.,
$20,000). - Select your preferred currency (USD, EUR, GBP, etc.).
- Input the amount of money you currently have saved (e.g.,
- Set Up Contributions
- Annual Contribution: Enter how much you plan to add each year (e.g.,
$5,000). - Annual Increase (%): If you expect to increase contributions yearly (e.g.,
3%). - Monthly Contribution: Add any recurring monthly deposits (e.g.,
$100). - Monthly Increase (%): Optional increase in monthly contributions over time.
- Annual Contribution: Enter how much you plan to add each year (e.g.,
- Adjust Interest & Compounding
- Interest Rate (%): Enter your expected annual return (e.g.,
3%). - Compound Frequency: Choose how often interest compounds (monthly, quarterly, etc.).
- Interest Rate (%): Enter your expected annual return (e.g.,
- Set Timeframe & Tax Rate
- Years to Save: Enter the duration (e.g.,
10years). - Tax Rate (%): Adjust for taxes on interest earnings (e.g.,
22%).
- Years to Save: Enter the duration (e.g.,
- Click “Calculate”
- Instantly view your projected End Balance, Total Contributions, and Interest Earned.
- Explore Results
- Chart: Visual breakdown of deposits vs. interest growth.
- Annual/Monthly Schedules: Detailed tables showing yearly or monthly progress.
- Switch Tabs: Toggle between annual and monthly projections.
- Change Language (Optional)
- Use the dropdown to select from 10 languages (e.g., Spanish, Arabic, Hindi).
Example Scenario
- Initial Deposit:
$10,000 - Annual Contribution:
$2,000(with2%yearly increase) - Monthly Contribution:
$50 - Interest Rate:
4%(compounded monthly) - Years:
15 - Tax Rate:
20%
Result:
- End Balance:
$78,450 - Total Contributions:
$52,300 - Interest Earned:
$16,150
Tips for Accuracy
- For conservative estimates, use a lower interest rate (e.g.,
2-3%for savings accounts). - Include tax rates if your earnings are taxable (e.g.,
22%for U.S. income tax brackets). - Adjust contributions if you plan to save more aggressively over time.
This tool helps plan for retirement, emergencies, or big purchases by projecting growth with compound interest!
Frequently Asked Questions (FAQs)
1. How does the savings calculator work?
The calculator estimates your savings growth based on:
✅ Initial deposit – Your starting balance.
✅ Regular contributions – Monthly or annual deposits.
✅ Compound interest – Earned on your balance over time.
✅ Tax & inflation adjustments – Optional inputs for accuracy.
2. What’s the difference between monthly and annual contributions?
- Monthly: Smaller, frequent deposits (e.g., $100/month).
- Annual: Lump sums (e.g., $5,000/year).
Tip: Combining both maximizes growth through compounding.
3. How does compounding frequency affect results?
Interest compounds faster with higher frequencies:
- Monthly compounding grows savings faster than annual compounding.
- Example: 4% interest compounded monthly yields more than 4% compounded yearly.
4. Should I include taxes in the calculation?
✔ Yes, if your interest earnings are taxable (e.g., standard savings accounts).
✔ No, for tax-advantaged accounts (e.g., Roth IRAs, 401(k)s).
5. Why are my projected returns lower than expected?
- Low interest rates: Savings accounts typically offer 1–4% APY.
- High tax rate: Taxes reduce net interest earnings.
- No contribution increases: Regular boosts combat inflation.
6. Can I use this for retirement planning?
Yes! Adjust for:
🔹 Longer timeframes (e.g., 30 years).
🔹 Higher-risk returns (e.g., 6–8% for stock investments).
🔹 Tax-free growth (select “0% tax” for retirement accounts).
7. How accurate are the results?
This tool provides estimates based on your inputs. For precise projections:
- Consult a financial advisor.
- Update calculations yearly with real account performance.
8. What’s the best way to maximize savings?
- Start early to leverage compound interest.
- Increase contributions annually (even by 1–2%).
- Use high-yield accounts (e.g., CDs, money market accounts).
9. Can I model irregular contributions?
This calculator assumes consistent deposits. For irregular savings:
- Use the average monthly/annual amount.
- Recalculate periodically with updated numbers.
10. How do I switch languages?
Click the dropdown menu (top-right) to select from 10 languages, including Spanish, Arabic, and Chinese. RTL (right-to-left) support is auto-enabled for Urdu/Arabic.