Savings Calculator

See how far your savings can grow with regular deposits and compound interest. Adjust the numbers and watch your future balance update instantly.

Project Your Savings
Future Balance
Total Deposits
Interest Earned
Interest as % of Balance
Growth Over Time — Deposits vs Interest

How a Savings Calculator Works

A savings calculator projects how a starting balance plus regular monthly deposits will grow over time once interest is added. The two levers that matter most are how much you contribute each month and the annual percentage yield (APY) your account earns. Small, consistent deposits compound into surprisingly large balances given enough time.

High-Yield vs Traditional Savings

The national average savings rate sits well below 1%, but online high-yield savings accounts have recently paid 4–5% APY. On a $20,000 balance that difference is hundreds of dollars a year for the exact same deposits — which is why where you keep your cash matters as much as how much you save.

Why Monthly Deposits Beat Lump Sums

Automating a fixed monthly transfer turns saving into a habit you never have to think about. Because each deposit starts earning interest immediately, money you set aside early does the most work. Saving $300 a month at 4.5% for ten years grows to far more than the $36,000 you actually deposited.

Tip: Keep your emergency fund in a high-yield savings account where it stays liquid, and route longer-term goals into investments that historically earn more than cash.

APY Already Accounts for Compounding

When a bank advertises an APY, that figure already reflects how often interest compounds during the year, so you can compare two accounts directly by their APY. This calculator compounds monthly, which closely matches how most savings accounts credit interest.

Frequently Asked Questions

How much should I keep in savings?
A common guideline is three to six months of essential expenses in an emergency fund, kept in a liquid high-yield savings account. Money you won't need for several years often grows faster in investment accounts than in cash savings.
What is APY?
APY (annual percentage yield) is the real rate of return on your savings over a year, including the effect of compounding. Comparing accounts by APY rather than the stated interest rate gives you an apples-to-apples comparison.
How is interest on savings calculated?
Most savings accounts calculate interest daily on your balance and credit it monthly. This calculator compounds monthly, adding each month's interest to your balance so future interest is earned on a larger amount.
Is savings account interest taxable?
Yes. Interest earned in a regular savings account is taxed as ordinary income, and your bank reports it on Form 1099-INT if you earn more than $10 in a year. Tax-advantaged accounts like IRAs can shelter long-term savings from annual taxes.
How can I save money faster?
Increase your monthly deposit, move your balance to a higher-APY account, and automate transfers so saving happens before you can spend the money. Even raising your deposit by $50 a month meaningfully changes your balance over a decade.

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