Regular deposits and time do most of the work. Raising deposits a little each year – say with every pay rise – has a big effect. Compare the APY of savings accounts, which accounts for compounding.
How to use the Savings Calculator
- Initial deposit
- Regular deposit
- Deposit frequency
- Deposits made at
- Saving period
- Annual interest rate
- Compounding frequency
- Yearly increase of deposits
- Inflation rate
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the initial deposit, regular deposit and frequency, timing, saving period, interest rate, compounding, yearly deposit increase and inflation.
Tips
- Use your real spending from bank statements rather than guesses.
- Automate savings so they happen before you spend.
- Revisit your plan once a year or after any big life change.
- Keep an emergency fund before investing for long-term goals.
Common mistakes to avoid
- Underestimating irregular expenses such as car repairs, gifts and annual bills.
- Ignoring inflation for long-term goals.
- Taking on high-interest debt to fund wants.
Inputs explained
| Field | What to enter |
|---|---|
| Initial deposit | Amount in your currency |
| Regular deposit | Amount in your currency |
| Deposit frequency | Choose one: Monthly, Bi-weekly, Weekly, Quarterly … |
| Deposits made at | Choose one: End of each period, Beginning of each period |
| Saving period | Units: years, months |
| Annual interest rate | In % |
| Compounding frequency | Choose one: Yearly, Semi-annually, Quarterly, Monthly … |
| Yearly increase of deposits | In % |
| Inflation rate | In % |
What each result means
- Interest earned = [Final balance] – [Total deposits]
- APY (effective annual rate) = effr([Annual interest rate]÷100, [Compounding frequency])×100
- Final balance in today’s money = [Final balance]÷(1 + [Inflation rate]÷100)^[Saving period]
Example values
How the main result changes when Initial deposit changes and everything else stays at the example values above:
| Initial deposit | Final balance |
|---|---|
| 2,500 | 35,173.98 |
| 3,750 | 37,232.74 |
| 5,000 | 39,291.5 |
| 6,250 | 41,350.27 |
| 7,500 | 43,409.03 |
| 10,000 | 47,526.55 |
Formula
Rate per deposit period i = (1 + r ÷ m)^(m ÷ f) − 1Final balance = P × (1 + APY)^t + deposit × ((1 + i)^n − (1 + g)^n) ÷ (i − g) × (1 + i × timing)Real value = final ÷ (1 + inflation)^tWorked example
Inputs — Initial deposit: $5,000; Regular deposit: $200; Deposit frequency: Monthly; Deposits made at: End of each period; Saving period: 10 years; Annual interest rate: 5 %; Compounding frequency: Monthly; Yearly increase of deposits: 0 %; Inflation rate: 0 %.
Results — Final balance = $39,291.50; Total deposits = $29,000.00; Interest earned = $10,291.50; APY (effective annual rate) = 5.116 %; Final balance in today's money = $39,291.50.
Frequently asked questions
How much will I have if I save $200 a month?
About $39,300 after 10 years at 5% compounded monthly with a $5,000 start.
What is the difference between APR and APY?
APY includes the effect of compounding.
Does deposit timing matter?
Deposits at the start of each period earn one more period of interest.
What formula does the Savings Calculator use?
Rate per deposit period i = (1 + r ÷ m)^(m ÷ f) − 1.