Savings Calculator

Calculate future value of savings with regular contributions

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About This Calculator

The Savings Calculator projects how much your savings will grow over time with regular monthly contributions and compound interest. This tool helps you set savings goals and understand how consistent saving can build wealth over time.

How It Works

  • 1

    Enter your initial deposit (starting amount).

  • 2

    Input your monthly contribution amount.

  • 3

    Specify the annual interest rate your savings will earn.

  • 4

    Enter the time period in years.

  • 5

    The calculator shows future value, total contributions, and interest earned.

Formula Explanation

Future Value = P(1+r)^n + PMT × [((1+r)^n - 1) / r]

Where P is the initial deposit, PMT is the monthly contribution, r is the monthly interest rate (annual rate ÷ 12), and n is the number of months. This formula calculates the future value with both initial deposit and regular contributions.

Tips

  • Start saving early - time is the most powerful factor in savings growth.

  • Even small monthly contributions add up significantly over time.

  • Higher interest rates dramatically increase your savings growth.

  • Automate your savings to ensure consistent contributions.

  • Consider high-yield savings accounts for better interest rates.

Common Uses

Savings Goal Planning

Calculate how much you need to save monthly to reach your goals.

Emergency Fund Building

Plan how long it will take to build an adequate emergency fund.

Long-term Savings

Project savings growth for major purchases or life events.

Retirement Savings

Estimate savings growth for retirement planning.

Frequently Asked Questions

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