Savings Calculator

With compound interest you earn interest not only on your deposits but on the interest you have already earned. Each period the interest is added to your balance, so the next period's interest is calculated on a larger amount. Early on the effect looks modest, but growth accelerates over time — which is why the later years of a long savings plan contribute far more than the early ones.

A large one, because compounding needs time to work. Money saved in your first year compounds for the entire horizon, while money added late compounds hardly at all. Starting ten years earlier can leave you with substantially more at the end than doubling your contributions later — try shifting the years slider in this calculator to see how sensitive the final amount is to time.

Over short horizons the initial deposit dominates, since contributions have not had time to accumulate. Over long horizons steady monthly contributions usually overtake it — hundreds of deposits each earning their own compound growth add up to most of the final balance. The best answer is both: a solid starting amount plus consistent contributions is what the strongest curves in this calculator are made of.

It restates your future balance in today's purchasing power. If prices rise about 3% a year, a dollar twenty years from now buys roughly half of what it buys today, so a big nominal balance can be misleading. The inflation-adjusted figure tells you what your savings will actually feel like when you spend them, which is the honest number to plan around.

Match the rate to where the money will actually sit. High-yield savings accounts and CDs have recently paid in the 3% to 5% range, while diversified stock investments have historically averaged roughly 7% to 10% a year before inflation — with far more year-to-year risk. Using a conservative rate for money you cannot afford to risk, and running a couple of scenarios, gives you a realistic range rather than one fragile prediction.

Turn on "Set a savings goal" and enter the amount and the number of years. The calculator works out the regular deposit that gets you there, on the schedule you chose and with any yearly increase, counting what your starting amount and the interest will add. It also shows when the plan you have entered reaches the goal, so you can see how far ahead or behind it is.