Our savings calculator helps you estimate the final balance and earned interest on your savings. It takes into account multiple factors, including taxes, inflation, and regular contributions. You can even input negative starting balances or contribution values to model specific scenarios. Try using our calculator to see how much you can save. Choosing the right high-yield savings account can significantly enhance your financial growth. Here are some top online savings accounts in the USA to consider like HSBC or Ally.

How to use the savings calculator

Estimate your investment growth quickly and accurately with our calculator. Just input the following details to get started in befriending a savings calculator:

Definitions

Initial Amount: This is the starting balance of your investment, or how much you plan to contribute initially. Whether you’re beginning with $500 or $20,000, your initial amount plays a key role in determining how much your investment will grow over time. For example, if you start with $1,000, your earnings will differ significantly from someone starting with $15,000.

Monthly Deposit: Your monthly deposit is the amount you regularly contribute to your investment. This can be adjusted based on your budget. For instance, if you decide to contribute $100 monthly, your growth will differ from contributing $300 per month. Experiment with different amounts to see how they impact the long-term growth of your investment using our savings calculator.

Annual Interest Rate: This is the percentage rate your investment earns annually. For example, if you’re investing in a savings account earning 2.5% or a CD offering 4%, this rate will determine how much your money grows. Don’t forget to account for how often the interest compounds, such as monthly or annually, as it significantly impacts growth.

Number of Years: This represents the duration of your investment. For example, if you’re saving for your child’s college fund for 18 years, or you’re planning to retire in 25 years, your investment has that much time to grow. The longer you leave your money invested, such as 10 years versus 30 years, the greater the potential for compounding growth. Utilize a savings calculator to see these effects.

How much should I save each month?

The amount you should save each month depends on your financial goals, income, and expenses. Here’s a quick guide to help you determine how much to save:

1. Follow the 50/30/20 Rule

• 50% of Income: Essential expenses like rent, groceries, and utilities.
• 30% of Income: Discretionary spending (entertainment, dining out, etc.).
• 20% of Income: Savings and debt repayment.

If you earn $3,000 per month, aim to save $600 (20%). Incorporate this into calculations with a savings calculator.

2. Base It on Your Goals

• Emergency Fund: Save 3–6 months of living expenses. Divide the total by the number of months you want to build it (e.g., $12,000 emergency fund in 12 months = $1,000/month).
• Retirement: Aim to save 15% of your pre-tax income in a retirement account.
• Big Purchases: For things like a car or vacation, calculate the cost and timeline (e.g., $10,000 car in 2 years = $417/month).

3. Use a Savings Calculator

Use tools like the NHIMoney or financial calculators to determine how much you need to save each month based on your specific financial goals. By using a savings calculator, you can plan effectively.