Savings Calculator

What Is a Savings Calculator?

A Savings Calculator is a financial tool that demonstrates the power of compound interest. It projects the future value of your savings based on your initial deposit, regular contributions, and an estimated annual interest rate. This free calculator is an excellent way to visualize how consistent saving and investment can lead to significant wealth growth over time, helping you plan for retirement, a down payment, or any long-term financial goal.

Last updated: November 8, 2025

How to Use This Calculator

Our free savings growth calculator gives you an instant projection. Just follow these steps:

1. Enter Initial Deposit: Input your starting savings or investment amount.
2. Add Monthly Contribution: Enter the amount you plan to save or invest each month.
3. Set Annual Interest Rate: Input your estimated annual rate of return.
4. Define Investment Period: Set the number of years you plan to save.
5. Click "Calculate": See the projected future value of your savings and the interest earned.

Understanding Your Savings Growth

The calculator uses the standard future value formula for a lump sum and an annuity, compounded monthly, to project your growth.

• Estimated Future Value: This is the total amount your savings will grow to at the end of the investment period.
• Total Contributions: This is the total amount of money you personally deposited (initial deposit + all monthly contributions).
• Total Interest Earned: This is the 'free money' generated by compound interest. It's the difference between the future value and your total contributions, showcasing the power of long-term investing.

Albert Einstein reportedly called compound interest the "eighth wonder of the world." This calculator demonstrates why: in the later years of an investment, the interest earned can surpass your own contributions.

Example Savings Calculation

This example shows the growth of a modest investment over 20 years.

Frequently Asked Questions