How to Use Savings Calculator
The Savings Calculator projects how a savings account grows over time. Enter the starting balance, annual interest rate, and contribution details. The Savings Calculator returns the final future value, the contributions you made, and the total interest earned.
- Enter starting balance - what is currently in the account.
- Enter interest rate and years - APR percentage and duration.
- Enter contribution - amount and frequency.
- Pick timing - beginning or end of period.
Formula & Theory - Savings Calculator
The Savings Calculator uses:
FV = P · (1 + i)^n + C · ((1 + i)^n - 1) / i · k| Symbol | Meaning |
|---|---|
| P | Starting balance |
| C | Recurring deposit |
| i | Periodic rate = APR / m |
| n | Number of periods = m × years |
| m | 52 weekly, 12 monthly, 1 yearly |
| k | 1 (end) or 1 + i (begin) |
Assumptions and Limits
The Savings Calculator assumes a constant rate and ignores taxes, fees, and inflation. Use it as a planning tool, not a guarantee.
Use Cases for Savings Calculator
- Long-term planning - emergency fund, down payment, vacation goals.
- Retirement - estimate after-tax balances when paired with a tax calculator.
- Education - illustrate the impact of compounding.
- Comparing accounts - test different APRs side by side.