Savings Calculator
See how much your savings can grow to over time with compound interest, based on starting amount, monthly savings and expected return.
How to use the savings calculator
- Enter how much you've already saved (0 if starting from scratch).
- Enter how much you plan to save each month.
- Enter the expected annual return and how many years you'll be saving — the calculator shows the final balance.
- Have a specific savings goal (e.g. $50,000 for a down payment)? Fill it into the optional field, and the calculator shows roughly how long it takes to reach it at your current savings rate.
How the savings are calculated
The calculator finds the future value of both the starting amount and the monthly deposits, with compound interest:
where r is the monthly return (annual ÷ 12 ÷ 100), and n is the number of months.
Worked example: $2,000 up front plus $200 a month for 10 years at 5 % grows to $34,350. Of that you contributed 2,000 + 200 × 120 = $26,000 yourself, while 34,350 − 26,000 = $8,350 is investment return. Almost a quarter of the final balance comes from the return, and that share keeps rising the longer you stay invested.
The compound interest effect means your returns themselves start earning returns over time — the longer the time horizon, the bigger this effect becomes relative to what you've actually contributed.
Frequently asked questions
What is compound interest?
Compound interest is when the return you earn also starts earning its own return, on top of the original amount. Over a long time this creates exponential growth in your savings.
What rate of return should I use in the calculation?
For a savings account, the interest rate is often 3–5%. For funds and stock investing, a historical average return is often used as a reference (around 6–8% for global stock funds over the long run), but this isn't guaranteed going forward.
Why does monthly saving matter so much over time?
Because each deposit gets its own time to grow with compound interest. Deposits you make early in the savings period have much more time to grow than deposits made near the end.