Savings Calculator
Project how a savings balance grows with regular deposits and interest — for any goal and time frame.
Understanding the Savings Calculator
This calculator projects a savings balance forward using the same compounding math behind any interest-bearing account: a starting amount grows with interest, and regular monthly deposits add on top, each one starting to earn its own interest from the moment it’s deposited.
Even at modest interest rates typical of savings accounts, consistency tends to matter more than the rate itself for shorter time frames — a steady monthly deposit habit usually contributes more to the final balance than the interest earned, especially over just a few years.
Use this for any savings goal with a time frame attached — a house down payment, a wedding, a large purchase — by working backward from your target balance to see what monthly deposit gets you there in the time you have.
See it in practice
Example 1 — Building toward a goal in 5 years
Example 2 — Same goal, higher monthly deposit
Common questions
Use your actual account’s rate if you have one — high-yield savings accounts and money market accounts vary, so check your bank’s current published rate rather than assuming a default.
Try a few different monthly deposit amounts until the projected balance matches your goal at your target date — it’s a quick way to find the deposit size you’d need without solving the formula by hand.
Standard savings accounts are typically low-risk relative to investing in securities, and many are insured up to certain limits by government deposit insurance in the US — but they also typically earn less than long-run investment returns.
It depends on the time frame and purpose. Money needed within a few years, or for an emergency fund, is generally kept in savings for stability; longer horizons may be better suited to investing — see the investment calculator to compare.
A common guideline under the 50/30/20 budget rule is directing 20% of after-tax income toward savings and debt payoff beyond minimums. Your own target depends on your goals, income, and existing financial obligations.
Automating a fixed transfer to a separate savings account on payday tends to work better than saving whatever’s left over at the end of the month, since it removes the need to make a fresh decision each pay period.
A savings account offers more flexibility with no penalty for withdrawals. A CD typically locks in a fixed rate for a set term, which can make sense for money you’re confident you won’t need before a specific date.
This depends on your account’s APY, your balance, and how long the money stays invested. A high-yield savings account can earn substantially more over a year than a traditional bank account paying close to 0%.
A 20% down payment avoids private mortgage insurance, but many loan programs accept less, sometimes as low as 3-5%. The right target depends on the home price you’re aiming for and your specific loan program.
Money you might need within the next few years generally belongs in savings for safety and liquidity. Money you won’t touch for a decade or more is usually better suited to investing, given its historically higher long-term returns.
Yes, especially over longer periods. Compound interest means your balance earns interest not just on your original deposits but also on previously earned interest, which accelerates growth the longer the money stays invested.
Increasing your monthly contribution has the most direct effect, but choosing a higher-yield account and directing windfalls like tax refunds or bonuses toward the goal can also meaningfully shorten the timeline.