How to use the Savings Calculator
The savings calculator shows how a starting balance and regular deposits grow at a given interest rate.
What you need to enter
- Starting balance ($)
- Monthly deposit ($)
- Interest rate (% / year)
- Years
The formula
Balance = start × (1 + r)^n + deposit × ((1 + r)^n − 1) ÷ r, where r is the monthly rate and n the months.
Worked example
Using the default values in the calculator:
- Starting balance ($): 2000
- Monthly deposit ($): 300
- Interest rate (% / year): 4
- Years: 5
| Ending balance | $22,331.69 |
| Total deposits | $20,000.00 |
| Interest earned | $2,331.69 |
Tips for better results
- Automate deposits so saving becomes a habit.
- Compare the rate with inflation to see real growth.
Common mistakes to avoid
- Assuming savings rates stay fixed for years.
- Forgetting tax on interest.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.