Savings Calculator
Calculate your savings growth with compound interest and regular deposits
Calculate Your Savings Growth
Starting amount in your savings account
APY: 5.12%
How often interest is calculated and added to your balance
Additional Deposits
Savings Growth Results
APY: 5.12%
Time Period: 5.0 years
Compound: monthly
Performance Analysis
Example Calculation
Retirement Savings Example
Initial Deposit: $5,000
Monthly Contribution: $500
Interest Rate: 7% annually
Time Period: 30 years
Compounding: Monthly
Result
Total Principal: $185,000
Interest Earned: $426,729
Final Balance: $611,729
Formula: A = P(1 + r/n)^(nt) + PMT[((1 + r/n)^(nt) - 1) / (r/n)]
Savings Account Types
Regular Savings
0.01% - 0.5% APY
Basic savings with easy access
High-Yield Savings
4% - 5%+ APY
Online banks, higher rates
Certificates of Deposit
3% - 5% APY
Fixed term, higher rates
Savings Tips
Start early to maximize compound interest
Automate regular deposits
Choose accounts with daily compounding
Compare APY rates regularly
Understanding Savings and Compound Interest
How Compound Interest Works
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. This creates exponential growth over time, making it one of the most powerful tools for building wealth.
Key Factors
- •Principal: Your initial deposit and regular contributions
- •Interest Rate: Annual percentage yield (APY)
- •Time: The longer you save, the more you earn
- •Frequency: More frequent compounding = higher returns
Compound Interest Formula
A = P(1 + r/n)^(nt)
- A: Final amount
- P: Principal (initial deposit)
- r: Annual interest rate (decimal)
- n: Number of times interest compounds per year
- t: Time in years
Rule of 72: Divide 72 by your interest rate to estimate how long it takes for your money to double. At 6% interest: 72 ÷ 6 = 12 years.