If your goal is fixed but your budget is too, the question becomes: what rate do I need? A required rate well above what savings accounts pay suggests you need to save more, wait longer or invest for higher (riskier) returns.
How to use the Savings Interest Rate Calculator
- Savings goal
- Initial saving balance
- Length of savings
- Additional deposit
- Deposit frequency
- Deposit timing
- Compounding frequency
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the savings goal, initial balance, time, regular deposit with frequency and timing, and the compounding.
Tips
- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.
Common mistakes to avoid
- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).
Inputs explained
| Field | What to enter |
|---|---|
| Savings goal | Amount in your currency |
| Initial saving balance | Amount in your currency |
| Length of savings | Units: years, months |
| Additional deposit | Amount in your currency |
| Deposit frequency | Choose one: Monthly, Bi-weekly, Weekly, Quarterly … |
| Deposit timing | Choose one: End of each period, Beginning of each period |
| Compounding frequency | Choose one: Yearly, Semi-annually, Quarterly, Monthly … |
What each result means
- Rate per deposit period = rate(round([Length of savings]×[Deposit frequency]), 0 – [Additional deposit], 0 – [Initial saving balance], [Savings goal], [Deposit timing])×100
- Required effective annual rate = ((1 + [Rate per deposit period]÷100)^[Deposit frequency] – 1)×100
- Required savings interest rate = nomr([Required effective annual rate]÷100, [Compounding frequency])×100
- Total money deposited = [Initial saving balance] + [Additional deposit]×round([Length of savings]×[Deposit frequency])
- Interest needed = [Savings goal] – [Total money deposited]
Example values
How the main result changes when Savings goal changes and everything else stays at the example values above:
| Savings goal | Required savings interest rate (%) |
|---|---|
| 25,000 | -16.313 |
| 37,500 | -2.104 |
| 50,000 | 7.017 |
| 62,500 | 13.696 |
| 75,000 | 18.949 |
| 100,000 | 26.938 |
Formula
Solve initial × (1 + i)^N + deposit × [(1 + i)^N − 1] ÷ i × (1 + i × timing) = goal for iNominal annual rate for the chosen compoundingWorked example
Inputs — Savings goal: $50,000; Initial saving balance: $10,000; Length of savings: 5 years; Additional deposit: $500; Deposit frequency: Monthly; Deposit timing: End of each period; Compounding frequency: Monthly.
Results — Rate per deposit period = 0.5847 %; Required effective annual rate = 7.247 %; Required savings interest rate = 7.017 %; Total money deposited = $40,000.00; Interest needed = $10,000.00.
Frequently asked questions
What rate do I need to reach my goal?
Enter your goal and plan – the calculator solves for the rate.
What if the rate is negative?
Your deposits alone exceed the goal; you don't need interest.
What if the required rate is very high?
Increase deposits or extend the time frame.
What formula does the Savings Interest Rate Calculator use?
Solve initial × (1 + i)^N + deposit × [(1 + i)^N − 1] ÷ i × (1 + i × timing) = goal for i.