How to Use This Calculator

The calculator shows four numbers after you hit calculate:

Final Balance is everything combined - what you deposited plus all the interest you earned.

Total Deposits: The actual money you put in yourself.

Your bank paid you the amount shown under Total Interest. That's the difference between what you deposited and your final balance.

Average Monthly Interest gives you a rough monthly number, but the real amount grows over time as your balance gets bigger.

Year-by-Year Breakdown

The table shows what happens each year. Watch how the interest column grows faster than the deposits column - that's compound interest at work.

Reaching Your Goal

Set a specific target and the calculator tells you if your current plan gets you there. If you're short, you'll see how much more you need to save or how much longer you need to wait.

How Compound Interest Works

Interest compounds - you earn interest on your deposits, then you earn interest on that interest, and the cycle continues.

Month 1: You have $1,000. At 5% annual interest, you earn about $4.17. Month 2: You have $1,004.17. You earn interest on the full amount. Month 12: The pattern continues, growing faster each month.

Put away $100/month for 10 years and you don't just have $12,000 (what you deposited). At 5% interest, you'd have over $15,000. The extra few thousand dollars came from compound interest.

What Your Numbers Mean

Initial Deposit

What you're starting with today. Put $0 if you're starting from scratch.

Regular Deposits

How much you add each week, month, or year. Pick the frequency that matches your paycheck schedule - weekly if you get paid weekly, monthly if you get paid monthly. The calculator handles the math.

Interest Rate

Your account's annual rate. Check what your bank actually pays you. If you don't have a high-yield account, you're probably earning almost nothing.

Time Period

Years until you need the money.

Savings Goal

Optional target. Leave it blank to see how much you'll have, or fill it in to find out if your plan gets you there.

Savings Tips

Set up automatic transfers on payday before you touch the money.
Split your income between needs, wants, and savings in a way that works for your situation.
Build at least $1,000 in savings before you attack debt aggressively. You need something to fall back on when emergencies hit.
Online banks typically pay 4-5% while traditional banks pay almost nothing. On the same balance, that's hundreds or thousands more per year.
Keep your savings in a different bank than your checking account so you don't accidentally spend it.
Some banks and apps can round up your purchases and save the difference automatically. The small amounts add up.
Got a tax refund or bonus? Save at least half before you get used to having it.
Wait 24 hours before buying anything over $50. Write it down, come back tomorrow. Most things feel less urgent the next day.
Separate accounts for separate goals. One for emergencies, one for a car, one for a house. Seeing specific progress keeps you motivated.
When you get a raise, save half of the increase before your lifestyle catches up to your new income.

Types of Savings Accounts

High-Yield Savings Accounts

Online banks pay 4-5% because they don't have expensive branch buildings. Your money is FDIC insured and you can get it in 1-3 days by transferring to your checking account.

Good for emergency funds and money you'll need within a few years. Most have no fees and no minimums.

Traditional Brick-and-Mortar Savings Accounts

Big banks pay almost nothing - often 0.01%. They have branches everywhere, but unless you actually need to walk into a bank regularly, you're losing hundreds of dollars per year in interest.

Money Market Accounts

Somewhere between checking and savings. Higher interest than regular savings (2-4%), sometimes with limited check-writing. Often require big minimum balances.

Certificates of Deposit (CDs)

Lock your money up for a set time (3 months to 5 years) at a guaranteed rate, usually 4-5.5%. Can't touch it without penalty. Only use for money you know you won't need.

Treasury Bills

Government securities for 4 to 52 weeks, paying around 4.5-5%. Safer than bank accounts technically. Bought through TreasuryDirect.gov.

More work than a savings account and harder to add money regularly. Better for parking large amounts short-term, not for regular savers.

Building Your Emergency Fund

Why You Need One

Car repairs, medical bills, broken appliances, urgent home repairs, job loss - unexpected expenses happen. Without an emergency fund, these go on credit cards at high interest rates, creating debt that takes years to clear. An emergency fund means you can handle problems without derailing everything.

How Much to Save

Start with $1,000. This covers most small emergencies. Get this saved before aggressively paying off debt or saving for other goals.

Then build to 3 months of essential expenses. Add up your monthly must-haves: rent/mortgage, utilities, food, insurance, minimum debt payments, transportation. Multiply by 3. Good for dual-income households or stable employment.

6 months is better for single-income households, freelancers, or commission workers. More protection if income is variable or job security is uncertain.

12 months for maximum security. For people in specialized fields, supporting dependents alone, or those who just sleep better with a bigger cushion.

Where to Keep Your Emergency Fund

High-yield savings account earning 4-5%. You can access your money in 1-3 days while it earns interest.

Don't invest emergency funds in stocks - you need guaranteed access without risk of loss. Don't keep it in regular checking where it earns nothing and you'll spend it anyway.

What Qualifies as an Emergency

Use your emergency fund for: Unexpected job loss, medical emergencies not covered by insurance, essential car repairs, urgent home repairs, necessary appliance replacement, emergency pet care.

NOT emergencies: Vacations, holiday shopping, predictable annual expenses, helping others financially when you're not stable yourself.

When to Replenish

If you use your emergency fund, immediately redirect all savings to rebuilding it. Make it your top priority until it's fully funded again. Otherwise the next crisis forces you into debt.

Planning for Specific Savings Goals

Different goals need different approaches. Here's what to think about for common savings targets.

Emergency Fund

Start with $1,000, then build to 3-6 months of expenses. Keep it in a high-yield savings account where you can access it fast but won't be tempted to spend it on non-emergencies. This goes before other goals.

House Down Payment

Most conventional mortgages want 20% down to avoid PMI. That means saving tens of thousands of dollars over several years for most homes.

Keep house fund money in savings, not stocks. You need it available on a specific timeline without market risk wiping out 20-30% right before you buy. First-time buyers can sometimes put down less using FHA loans, but you'll pay PMI until you hit 20% equity.

Car Purchase

Paying cash avoids financing costs. Consider used instead of new - a 3-year-old car costs significantly less while still being reliable. Cars lose value, so minimize how much money you tie up in them.

Wedding

Costs vary wildly by location, guest count, and choices. A longer engagement gives you more time to save and helps you avoid debt. Paying off wedding debt over years with interest feels much worse than saving up beforehand.

Vacation

Save the amount your trip actually costs. Use a separate account labeled "vacation fund" so you don't accidentally spend your emergency money. Planning ahead means you enjoy the trip without the guilt of credit card debt afterward.

Education Expenses

For shorter-term education costs (tutoring, test prep, application fees, campus visits), use regular savings. 529 plans work better for long-term college savings because of tax benefits.

Home Improvement

Remodels range from a few thousand to many tens of thousands. Paying cash avoids interest and prevents putting your home at risk with loans. Start with smaller projects while saving for bigger ones.

Ways to Save More Money

Find Money You're Already Wasting

Go through your bank statement and cancel subscriptions you forgot about.
Call your insurance company yearly and ask for a better rate. Sometimes they say yes.
Cooking at home instead of eating out constantly can save a few hundred dollars per month. You know this already.
If you use cashback credit cards, send the rewards straight to savings instead of treating it like free spending money. Only works if you pay the full balance every month.

Automate Your Savings

Automatic transfers on payday, before you pay any bills. What you don't see, you won't spend.
Wait a day before buying anything over $50. Impulse purchases usually feel less urgent after 24 hours.
Multiple accounts for different goals (emergency, car, house) keep you more motivated than one generic pile of money.
Got a raise? Bump your automatic savings by half the increase before you get used to spending the extra income.
Watch your balance grow. Checking it regularly keeps you motivated.
High-yield accounts pay 4-5%. Regular savings accounts pay basically nothing. Pick one that actually pays you something.
Keep savings separate from checking. The friction helps prevent you from raiding it for non-emergencies.

Common Mistakes

Checking accounts earn nothing. Don't keep all your savings there where you'll spend it anyway.
Willpower fails eventually. Automation wins because it requires zero daily decisions.
"Some money" is too vague. "$10,000 in 2 years" gives you something concrete to aim for.
Build at least $1,000 in emergency savings first, then attack debt. Otherwise the first emergency sends you right back into debt.
Short-term savings don't belong in stocks. Markets drop, sometimes by a lot, right when you need your money.

Common Questions

What interest rate should I use?

Check your bank's current rate. High-yield accounts pay around 4-5% right now. Regular savings accounts pay almost nothing. If you don't have a high-yield account, use 4.5% as an estimate for what you could be earning.

Is this calculator accurate?

Yes. It uses standard compound interest formulas. Results assume you stick to the deposit schedule and rates stay constant.

How much should I save each month?

Start with whatever you can do consistently. Saving $100/month and sticking with it beats trying for $500/month and quitting. Increase the amount as you're able.

Should I save or pay off debt first?

High-interest debt (like credit cards at 20%) should get paid off first - you can't earn 20% in a savings account. Low-interest debt (like a 3% car loan) you might keep while building savings. Either way, keep $1,000 minimum in savings for emergencies so you don't go right back into debt.

When will I reach my goal?

Enter your target in the "Savings Goal" field and calculate. The tool shows if your plan works or if you need to save more or wait longer.

Can I change the deposit frequency?

Yes - weekly, bi-weekly, monthly, quarterly, or annually. The calculator converts everything automatically.

Savings Calculator

Balance Breakdown