Savings Calculator
Calculate how your savings will grow over time with compound interest
Plan your financial future with our comprehensive savings calculator. See how regular contributions and compound interest can help you reach your savings goals, whether for retirement, emergency fund, or major purchases.
Savings Results
Enter your savings information to see projections
Common Savings Goals
Emergency Fund
6 months of expenses for financial security
House Down Payment
20% down payment for a home purchase
Retirement
$1 million retirement nest egg
How Compound Interest Works
The Power of Compounding
Compound interest is "interest on interest" - you earn returns not just on your original investment, but also on all the interest you've previously earned.
Formula: A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
Where A = final amount, P = principal, r = annual rate, n = compounding frequency, t = time, PMT = monthly payment
Example: The Early Bird Advantage
Sarah starts at 25: $200/month for 40 years at 7% = $525,000
John starts at 35: $400/month for 30 years at 7% = $400,000
Sarah invests half as much per month but ends up with more money because she started 10 years earlier!
Key takeaway: Time is your most powerful wealth-building tool.
Frequently Asked Questions
How much should I save each month?
A common rule is the 50/30/20 budget: 50% for needs, 30% for wants, and 20% for savings. However, the exact amount depends on your income, expenses, and financial goals. Start with what you can afford and increase gradually.
What's a realistic return rate to expect?
Historical stock market returns average around 7-10% annually, but this varies greatly. Conservative estimates use 6-7%, while aggressive projections might use 8-10%. For savings accounts, expect 0.5-2%. Always use conservative estimates for planning.
Should I prioritize paying off debt or saving?
Generally, pay off high-interest debt (credit cards) first, then build an emergency fund, then focus on long-term savings. If your debt interest rate is higher than your expected investment returns, prioritize debt payoff.
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