A savings calculator shows how a starting balance and regular contributions grow over time at a set interest rate. Use it to plan toward a specific balance, such as an emergency fund or a near-term purchase.
The amount you already have saved.
APY varies by bank and account type.
The amount you add on a regular basis.
How often you add to your savings.
How long you plan to keep contributing.
$13,734 of that is interest earned, or 23% of your final balance.
Starting balance plus deposits
Earned over 10 years
Assumes a constant APY and that contributions are made at the end of each period.
These results are estimates, not predictions. They're calculated from the figures you entered and assume your rate of return and inflation rate hold steady every year, which real markets don't do. Change any input and the result changes. Use this to compare scenarios, not to plan around a specific number.
Enter your starting balance, expected annual percentage yield, additional contribution amount, and the number of years you plan to save. The calculator shows your projected balance, along with the portion that comes from contributions and the portion that comes from interest.
Your starting balance is the amount of money you already have saved. Enter this amount as your principal.
Annual percentage yield, or APY, is the interest rate your account earns in a year. APY varies by bank and account type.
Additional contribution is the amount you plan to add to your savings on a regular basis. Contributions increase your principal, which increases the amount of interest you earn.
Years to save is the length of time you plan to keep contributing before using the funds. A longer timeline gives your contributions and interest more time to compound.
Traditional Savings Account. A traditional savings account is offered by most banks and credit unions. These accounts typically pay a low interest rate.
High-Yield Savings Account. A high-yield savings account pays a higher interest rate than a traditional savings account. Online banks are more likely than branch banks to offer high-yield accounts.
Certificate of Deposit. A certificate of deposit, or CD, locks in a fixed interest rate for a set term. Withdrawing funds before the term ends results in a penalty.
Money Market Account. A money market account often pays a higher interest rate than a standard savings account and may include check-writing or debit card access.
Financial professionals commonly recommend keeping three to six months of expenses in an emergency fund. A savings account can also be used for shorter-term goals, such as a home down payment.
A savings account is a bank or credit union account that holds cash and pays interest. Savings accounts are FDIC insured up to $250,000 per depositor, per bank, which protects your principal if the bank fails.
Savings accounts are meant for money you may need on short notice, such as an emergency fund, rather than long-term growth. Because the funds stay liquid and low-risk, savings accounts typically pay less than investments like stocks or bonds.
Interest on a savings account is expressed as an annual percentage yield, or APY, which reflects both the interest rate and how often the account compounds. Compounding means the interest you earn is added to your balance, so future interest is calculated on a larger amount.
Savings account rates vary by institution. Large traditional banks tend to pay less, since they carry higher overhead costs. Online banks and credit unions tend to pay more, since they carry fewer overhead costs or operate as nonprofits.
Some savings accounts have minimum balance requirements or monthly fees. Reviewing an account's terms before opening it can help you avoid losing interest to fees.
Building the right savings strategy is a personal decision. A fiduciary financial advisor can help you set a savings target and choose the right accounts to reach it. Matching with an advisor is free and comes with no pressure to commit.
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