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Savings calculator
What will regular saving grow to? Or, working backwards, how much do you need to put away each month to hit a goal?
After 5 years you'd have
$17,796
$16,000 you put in $1,796 interest
Plum = your deposits, teal = interest earned on top. The teal slice grows faster every year because interest starts earning interest.
Why the teal slice speeds up
In year one, interest is earned only on what you've deposited so far. By year five it is also earned on the previous four years of interest. That snowball — compounding — is slow at first, which is why starting early matters more than starting big. Try doubling the years instead of doubling the deposit and compare.
Where the money should come from
Savings work best as a line in your budget, not whatever is left at the end of the month. The 50/30/20 rule puts 20% of take-home pay here; the emergency fund calculator tells you how big the first pot should be.
Questions people ask
How is savings interest calculated here?
Interest is compounded monthly at the annual rate you enter divided by 12, and each monthly deposit is added at the end of the month. Real accounts may compound daily and change rates, so treat the result as an estimate.
What interest rate should I use?
Use the rate your savings account actually pays (the AER or APY). Rates change, so re-run the numbers when your bank changes its rate. Leave inflation out unless you want a “today’s money” view — then subtract expected inflation from the rate.
How much should I save each month?
A common guideline is 20% of take-home pay, as in the 50/30/20 rule. Build an emergency fund first, then save for goals and retirement.
Does this include tax on interest?
No. Depending on where you live, interest may be taxable above an allowance. Check your local tax rules.