Savings Calculator
See how your savings grow. Enter a starting deposit, what you add each month, the interest rate and how long you will save to get the final balance, total interest and a year-by-year breakdown.
Nominal rate (APR) before compounding.
Optional, e.g. 3% a year.
Optional. 0 for a tax-free account.
How to use the Savings Calculator
- Enter your initial deposit and how much you will add each month.
- Enter the interest rate and choose how often it compounds.
- Set the number of years you plan to save.
- Optionally add a yearly deposit increase or tax on interest.
- Press Calculate to see your balance, the interest you earn and the yearly table.
Savings growth formula
Balance = P × (1 + i)n + D × [(1 + i)n − 1] ÷ i
- P: initial deposit. D: monthly deposit. n: number of months.
- i: monthly rate. With monthly compounding i = annual rate ÷ 12; otherwise the calculator uses the equivalent monthly rate i = (1 + r/m)m/12 − 1.
- Deposits at the start of each month earn one extra month of interest: multiply the deposit part by (1 + i).
- APY = (1 + r/m)m − 1.
What $100 a month grows to
Deposits at the end of each month, monthly compounding, starting from $0:
| Years | Deposited | At 2% | At 4.5% | At 7% |
|---|---|---|---|---|
| 1 | $1,200.00 | $1,211.06 | $1,225.06 | $1,239.26 |
| 3 | $3,600.00 | $3,707.01 | $3,846.61 | $3,993.01 |
| 5 | $6,000.00 | $6,304.74 | $6,714.56 | $7,159.29 |
| 10 | $12,000.00 | $13,271.97 | $15,119.81 | $17,308.48 |
| 20 | $24,000.00 | $29,479.68 | $38,812.44 | $52,092.67 |
| 30 | $36,000.00 | $49,272.54 | $75,938.61 | $121,997.10 |
Over short periods your deposits do most of the work; over decades, interest overtakes them.
Frequently asked questions
How is interest on savings calculated?
Each period the bank adds interest equal to the balance times the periodic rate. With monthly compounding at 4.5% a year, the monthly rate is 4.5% ÷ 12 = 0.375%. The interest then earns interest too, which is compound interest.
What is the formula for savings with monthly deposits?
Balance = P × (1 + i)^n + D × [(1 + i)^n − 1] ÷ i, where P is the initial deposit, D the monthly deposit, i the monthly rate and n the number of months. For deposits at the start of each month, multiply the deposit part by (1 + i).
What is the difference between APR and APY?
APR is the nominal yearly rate; APY includes compounding. A 4.5% rate compounded daily has an APY of about 4.60%. Banks usually advertise APY for savings accounts.
How much will $250 a month grow to in 10 years?
With $5,000 to start, $250 at the end of each month and 4.5% compounded monthly, you would have about $45,634 after 10 years: $35,000 of deposits and about $10,634 of interest.
How does compounding frequency change the result?
More frequent compounding adds slightly more interest, but the difference between monthly and daily compounding is small. The rate and the number of years matter far more.
Is this calculator accurate for my bank?
It is a close estimate. Banks may calculate interest on the daily balance, credit it monthly, or change variable rates over time. When compounding is less frequent than monthly, the calculator uses the equivalent monthly rate.