Savings Calculator

Savings Calculator

Project a savings balance using APY, regular deposits and time.

UNDERSTAND THE ANSWER

How is this calculated?

This estimate treats APY as a constant annual return compounded monthly and assumes deposits are made at the end of each month.

Savings future valueFV = Initial growth + Future value of monthly deposits

A practical example

$5,000 plus $300 per month at 4.25% for five years grows to about $25,000.

Assumptions, interpretation and common mistakes

Calculation assumptions

  • APY stays constant throughout the saving period.
  • Deposits are made at the end of every month.
  • Withdrawals, taxes and account fees are excluded.

How to interpret the result

  • Projected balance includes your deposits plus estimated interest.
  • Interest earned is the portion above all deposits.
  • A variable-rate savings account may finish above or below the estimate.

Common mistakes to avoid

  • Assuming a promotional APY will last for years.
  • Using APR when the bank quotes APY.
  • Forgetting taxes or withdrawals that reduce compounding.