Savings Calculator
Regular saving beats occasional large deposits for almost every goal — an emergency fund, a vacation, a down payment. This savings calculator shows how a starting balance plus fixed monthly deposits grows at a given interest rate with monthly compounding.
Use it to answer the practical question: “How much do I need to put aside each month to reach my goal by a specific date?”
Enter valid values to see the results.
Formula
P is the starting balance, D the monthly deposit, r the annual rate and t the years. Interest compounds monthly, which is how most savings accounts credit it. Deposits are assumed at the end of each month.
What you need
- Starting balance: what you already have saved toward this goal — 0 is fine.
- Monthly deposit: an amount you can sustain even in tight months; consistency beats size.
- Rate: the APY of your savings account. High-yield accounts pay several times more than standard ones — shop around.
Worked example
Practical tips
- Work backwards from a goal: divide the target by the months available to find the required monthly deposit, then check it here.
- Keep emergency savings in a separate high-yield account so the interest is real and the money is harder to spend.
- Raise the deposit with every pay raise — you will not miss money you never see.
- Even a 1% higher APY adds up: on this example it is worth over $1,000 across 10 years.
Balance after 10 years of $200 monthly deposits (no starting balance)
| APY | Deposited | Balance | Interest |
|---|---|---|---|
| 1% | $24,000 | $25,229 | $1,229 |
| 3% | $24,000 | $27,948 | $3,948 |
| 5% | $24,000 | $31,056 | $7,056 |
| 7% | $24,000 | $34,617 | $10,617 |
Common mistakes
- 1 Saving whatever is “left over” at month end — there is never anything left over. Pay yourself first.
- 2 Leaving large balances in a 0% checking account while inflation erodes them.
- 3 Ignoring inflation: at 3% inflation, cash under the mattress loses a quarter of its value in 10 years.
Frequently asked questions
How much should I save each month?
A common baseline is 10–20% of take-home pay, split between emergency savings and long-term goals. Any consistent amount beats none — start with what is sustainable.
What is the difference between APY and APR?
APY includes compounding and is the number that matters for savings. A 4% APY means $100 becomes $104 after one year regardless of how often interest is credited.
How big should an emergency fund be?
Typically 3–6 months of essential expenses. Use this calculator with your monthly essential spend as the target balance.
Are savings account rates fixed?
Usually not — most are variable and move with central bank rates. Recalculate with a conservative rate to avoid over-promising yourself.