Savings Calculator
Enter a starting balance, how much you add each month, an annual interest rate and a number of years. The calculator compounds the interest monthly and adds each contribution at the end of the month. It shows the final balance, your total contributions and the interest earned.
How to use the Savings Calculator
- Enter your starting balance, how much you add each month, the annual interest rate and the number of years.
- Press Calculate to see the final balance, your total contributions and the interest earned.
- Change the rate or the monthly amount and calculate again to see how each one moves the final balance.
The savings projection formula
FV = PV(1 + r)^n + PMT · [((1 + r)^n − 1) / r]
PV is the starting balance and PMT is the monthly contribution. r is the annual rate divided by 12 and n is the number of years times 12. Each contribution goes in at the end of a month, so it starts earning interest the month after. At a 0% rate the balance is PV plus PMT × n. Total contributions are PMT × n and leave out the starting balance. Every figure is rounded to the cent.
Worked example
Starting with $2,000 and adding $300 a month at 4.5% for 5 years: FV = 2,000 × 1.00375^60 + 300 × (1.00375^60 − 1) ÷ 0.00375 = $22,647.26. Total contributions are 60 × $300 = $18,000.00, and the interest earned is $22,647.26 − $2,000 − $18,000 = $2,647.26.
Frequently asked questions
What interest rate should I enter for my savings account?
Use the rate your bank lists today for the account you hold or plan to open. Savings rates move with the Federal Reserve's policy rate and vary a lot between banks, so compare the current APY on two or three accounts before you choose. The FDIC publishes national average rates every month, which gives you a baseline to judge an offer against. If the bank shows an interest rate next to the APY, enter the interest rate. This calculator compounds monthly, so an APY entered here gives a slightly higher balance than the bank will pay. To see what an APY pays after one month, one year and five years, look up how much $10,000 earns at 4.5% APY.
When does the calculator add my monthly contribution?
At the end of each month. The starting balance earns interest from the first month, while each contribution starts earning the month after it goes in. The last contribution earns nothing before the period ends.
Is a CD better than a savings account?
It depends on whether you can leave the money alone. The CFPB says a CD generally asks you to keep the money in for a set term and charges a penalty fee if you take it out early. To compare a CD with a savings account, run the CD's APY and term through the CD calculator and the savings rate through this one over the same months.