Kalkulo

Savings calculator

Project how a deposit plus monthly contributions grow at a chosen annual return, with a year-by-year compound interest chart.

Result
$61,091
Final balance after 15 years
Convention: monthly compounding (annual rate / 12), contributions made at the end of each month.

About this tool

Why use this tool

The savings calculator projects the future value of your money by combining an initial deposit, regular monthly contributions and an annual return. It's ideal for planning medium- to long-term goals: down payment on a house, college fund, retirement supplement, emergency fund or steady wealth building over decades.

How it works

Each month, the tool applies one twelfth of the annual return to your capital and adds your monthly contribution. This compound growth makes both your contributions and previously earned interest work for you. The chart compares total contributions to the final balance, highlighting how much came from returns alone.

Real example

With a $10,000 initial deposit, $500 monthly contributions and a 7% average annual return (roughly historical S&P 500), your account would grow to about $412,000 after 25 years. Total contributions would be $160,000, meaning around $252,000 came from compound growth.

Practical tips

Prioritise tax-advantaged accounts: max out the 401(k) match first (typically 3–6% employer match), then a Roth IRA ($7,000 limit in 2026), then a taxable brokerage. Index funds (VTSAX, VTI, SPY) offer broad market exposure with low fees (0.03–0.10% expense ratios). Automate contributions on payday so you never see the money. Rebalance annually. Increase contributions with every raise ("save the raise") to accelerate growth without lifestyle inflation.

Disclaimer

The return rate is assumed constant, which never happens in practice: markets fluctuate, sometimes dramatically. Past performance does not guarantee future returns. Inflation erodes purchasing power. This simulation is educational and is not investment advice or a guarantee of outcome. Consult a fiduciary financial advisor or CFP before making major investment decisions.

Frequently asked questions

What is the difference between a savings account and a high-yield savings account?⌄
A traditional savings account at a major bank typically offers a very low interest rate, often below 0.5% APY. A high-yield savings account (HYSA), usually offered by online banks or credit unions, offers significantly higher rates — often 4-5% APY in 2026 — with the same FDIC insurance protection up to $250,000. The main trade-off is that HYSAs are online-only, but for pure savings growth, they are almost always superior.
How does compound interest work and how often should it compound?⌄
Compound interest means earning interest on your previously earned interest, creating exponential rather than linear growth. The more frequently interest compounds (daily vs monthly vs annually), the faster your money grows. Most online savings accounts compound daily, which maximizes your returns. The difference between daily and monthly compounding is small but meaningful over decades of saving.
What is the 50/30/20 rule for saving?⌄
The 50/30/20 rule is a simple budgeting framework where 50% of after-tax income goes to needs (housing, food, utilities), 30% to wants (entertainment, dining out, travel), and 20% to savings and debt repayment. Financial experts recommend keeping 3-6 months of expenses in an emergency fund before investing. The 20% savings rate is a guideline — higher-income earners should aim for more.
What is the difference between a Roth IRA and a Traditional IRA?⌄
With a Traditional IRA, contributions may be tax-deductible now, reducing your current taxable income, but withdrawals in retirement are taxed as ordinary income. With a Roth IRA, contributions are made with after-tax dollars (no deduction now), but all qualified withdrawals in retirement are completely tax-free, including decades of investment growth. Roth IRAs are generally better for younger people expecting higher future tax rates.
How much should I have saved by each age?⌄
Common benchmarks suggest having 1x your annual salary saved by age 30, 3x by 40, 6x by 50, 8x by 60, and 10x by retirement at 67. These are guidelines from Fidelity based on maintaining your lifestyle in retirement. The actual amount depends heavily on your expected retirement lifestyle, Social Security benefits, other income sources, and planned retirement age. Use our savings calculator to model your specific situation.

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