Monthly Savings Calculator
Calculate how your savings grow with compound interest. Find out your future balance, how much to save monthly for a goal, or how long until you reach your target.
Power of Compound Interest
$500/month at 5% APY for 10 years = $77,641 (only $60,000 contributed). That's $17,641 in free interest!
💵 Savings Details
💡 Rate Reference:
📈 Your Future Balance
After 10 Years You'll Have
$79,288
Total Contributed
$61,000
Interest Earned
$18,288
📊 Growth Over Time
🎉 23.1% of your final balance is FREE money from interest!
📊 Year-by-Year Breakdown
| Year | Total Contributed | Interest Earned | Balance |
|---|---|---|---|
| Year 1 | $7,000 | $191 | $7,191 |
| Year 2 | $13,000 | $698 | $13,698 |
| Year 3 | $19,000 | $1,538 | $20,538 |
| Year 4 | $25,000 | $2,728 | $27,728 |
| Year 5 | $31,000 | $4,286 | $35,286 |
| Year 6 | $37,000 | $6,231 | $43,231 |
| Year 7 | $43,000 | $8,582 | $51,582 |
| Year 8 | $49,000 | $11,361 | $60,361 |
| Year 9 | $55,000 | $14,588 | $69,588 |
| Year 10 | $61,000 | $18,288 | $79,288 |
🎯 Common Savings Goals Reference
| Goal | Target | Timeline | Monthly (0%) | Monthly (5%) |
|---|---|---|---|---|
| Emergency Fund (3 mo) | $5,000 | 1 year | $417 | $406 |
| Emergency Fund (6 mo) | $10,000 | 2 years | $417 | $395 |
| Vacation | $3,000 | 1 year | $250 | $243 |
| Car Down Payment | $5,000 | 2 years | $208 | $198 |
| House Down Payment | $50,000 | 5 years | $833 | $732 |
| Wedding | $20,000 | 2 years | $833 | $791 |
* Monthly (5%) shows how much less you need to save when earning 5% APY interest
💰 How to Maximize Your Savings
The Power of Compound Interest
Compound interest is often called the "eighth wonder of the world." It means you earn interest not just on your original deposit, but also on the interest you've already earned. Over time, this creates a snowball effect that accelerates your wealth growth.
The 50/30/20 Rule
A popular budgeting guideline suggests allocating your after-tax income as follows: 50% for needs (rent, utilities, groceries), 30% for wants (entertainment, dining out), and 20% for savings and debt repayment. Even if you can't hit 20%, saving consistently is what matters most.
Tips to Save More
1. Automate your savings – Set up automatic transfers on payday.
2. Use a high-yield savings account – Earn 4-5% APY instead of 0.01%.
3. Start small – Even $50/month adds up over time.
4. Increase with raises – Save half of every raise you receive.
📈 Current Rate Reference
⚡ Quick Math
$100/mo × 30 years @ 7% = $121,997
$500/mo × 10 years @ 5% = $77,641
$1000/mo × 5 years @ 5% = $68,006
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Frequently Asked Questions
To save $10,000 in one year, you'd need to save approximately $833 per month without interest. With a 5% APY high-yield savings account, you'd need about $813 per month. The exact amount depends on your starting balance and interest rate.
Saving $100/month for 30 years: With no interest, you'd have $36,000. With 5% APY, you'd have about $83,226. With 7% average investment return, you'd have approximately $121,997. Compound interest makes a huge difference over long periods!
No! 1% per month compounds to 12.68% annually, not 12%. This is because each month's interest earns interest in subsequent months. The formula is (1.01)^12 - 1 = 12.68%. Always compare APY (Annual Percentage Yield) which accounts for compounding.
With 5% APY on $5,000, you'd earn $250 in interest after one year (assuming monthly compounding and no additional deposits). After 5 years, your $5,000 would grow to approximately $6,381, earning $1,381 in interest.
Compound interest means you earn interest on both your original deposit AND on previously earned interest. For example, $1,000 at 5% earns $50 in year one ($1,050 total). In year two, you earn 5% on $1,050 = $52.50. Over time, this 'interest on interest' effect accelerates your growth.
Financial experts recommend the 50/30/20 rule: save 20% of your after-tax income. For someone earning $4,000/month after taxes, that's $800/month. However, any amount you can consistently save is beneficial. Start with what's comfortable and increase over time.
💰 Disclaimer: This calculator provides estimates based on constant interest rates and regular deposits. Actual results may vary. Interest rates can change, and this tool does not account for taxes, fees, or inflation. Consult a financial advisor for personalized advice.