Savings Calculator - Free Goal & Interest Calculator
Free savings calculator shows how your money grows with compound interest. Plan savings goals, emergency funds, and see your money
Savings Calculator
See how your savings grow over time with compound interest. Plan for any financial goal.
Understanding Savings and Compound Interest
Real-world applications for this tool range from professional work to personal planning. Use the tool above for your specific situation.
Albert Einstein reportedly called compound interest "the eighth wonder of the world," saying "he who understands it, earns it; he who doesn't, pays it." Whether or not Einstein actually said this, the sentiment is accurate: understanding compound interest is fundamental to building wealth.
Simple interest pays you only on your original deposit. Compound interest pays you on your deposit PLUS all the interest you've already earned. This creates exponential growth—your money makes money, and that money makes more money.
$10,000 at 7% for 30 years:
Simple interest: $10,000 + ($700 × 30) = $31,000
Compound interest: $10,000 × (1.07)^30 = $76,123
Compound interest earns you $45,123 more—over 4x your original deposit!
A = Final amount, P = Principal, r = Annual rate, n = Compounds per year, t = Years
The earlier you start saving, the more time compound interest has to work. Consider two savers:
| Saver | Starts At | Saves Until | Monthly | Total Invested | Value at 65 |
|---|---|---|---|---|---|
| Early Emma | Age 25 | Age 35 (stops) | $500 | $60,000 | $602,070 |
| Late Larry | Age 35 | Age 65 (continues) | $500 | $180,000 | $566,416 |
Emma invested only $60,000 over 10 years, then stopped completely. Larry invested $180,000 over 30 years—three times as much. Yet Emma ends up with more money because she started 10 years earlier.
Savings Goals: How Much Do You Need?
Financial experts recommend 3-6 months of expenses in an easily accessible savings account. This protects you from debt when unexpected expenses arise.
| Monthly Expenses | 3-Month Fund | 6-Month Fund | Monthly to Build in 1 Year |
|---|---|---|---|
| $3,000 | $9,000 | $18,000 | $750 - $1,500 |
| $4,000 | $12,000 | $24,000 | $1,000 - $2,000 |
| $5,000 | $15,000 | $30,000 | $1,250 - $2,500 |
| $6,000 | $18,000 | $36,000 | $1,500 - $3,000 |
A 20% down payment avoids PMI and gets you better mortgage rates:
| Home Price | 10% Down | 20% Down | Monthly to Save in 5 Years |
|---|---|---|---|
| $300,000 | $30,000 | $60,000 | $500 - $1,000 |
| $400,000 | $40,000 | $80,000 | $667 - $1,333 |
| $500,000 | $50,000 | $100,000 | $833 - $1,667 |
| Age | Target Savings | Example ($75K salary) |
|---|---|---|
| 30 | 1x annual salary | $75,000 |
| 40 | 3x annual salary | $225,000 |
| 50 | 6x annual salary | $450,000 |
| 60 | 8x annual salary | $600,000 |
| 67 | 10-12x annual salary | $750,000-$900,000 |
10 Real Savings Scenarios
Goal: $15,000 emergency fund in 2 years
Strategy: $625/month into high-yield savings (5% APY)
Result: $15,716 after 2 years ($716 in interest earned)
Goal: $60,000 down payment in 5 years
Strategy: $5,000 initial + $900/month at 4.5% APY
Result: $66,543 after 5 years ($7,543 from interest)
Goal: $150,000 for college
Strategy: $2,000 initial + $400/month at 7% (529 plan)
Result: $171,232 after 18 years (deposit $88,400, earn $82,832)
Starting at age 25 with $0
Strategy: $1,500/month at 7% average return
Result: $1,077,593 at age 50 (invest $450K, earn $627K)
Both save $400/month at 7% until 65:
Age 22 start (43 years): $1,175,483
Age 32 start (33 years): $542,815
10 extra years = $632,668 more wealth!
Current savings: $50,000 | Goal: $500,000 by 65
Strategy: $950/month at 7%
Result: $503,187 after 20 years
Goal: $25,000
Strategy: $3,000 initial + $1,200/month at 5% APY
Result: $25,382 - paid with cash, no debt!
Goal: $30,000 car
Strategy: $600/month at 4.5% APY
Result: $31,358 (save ~$3,500 vs financing)
Starting at 25: Just $400/month at 8%
Result: $1,295,283 at age 65
Invest $192,000, compound interest adds $1.1 million!
Goal: $5,000 vacation every year
Strategy: $400/month into vacation sinking fund
Result: Never go into debt for travel again
Where to Keep Your Savings
| Account Type | Typical APY | $10,000 Earns/Year | Best For |
|---|---|---|---|
| Traditional bank savings | 0.01-0.1% | $1-$10 | Convenience only |
| High-yield savings (online) | 4-5% | $400-$500 | Emergency fund, goals |
| Money market account | 4-5% | $400-$500 | Larger balances |
| CDs (1-year) | 4.5-5.5% | $450-$550 | Money you won't need |
| I-Bonds | 4-5%+ | $400-$500+ | Long-term, inflation hedge |
Online banks offer 10-20x the interest of traditional banks because they have lower overhead. Your money is just as safe (FDIC insured to $250,000) but grows much faster. There's no reason to keep significant savings in a traditional 0.01% account.
CDs lock your money for a set term in exchange for slightly higher rates. Consider a CD ladder: split savings across 3-month, 6-month, 1-year, and 2-year CDs. As each matures, reinvest in the longest term for regular access plus higher rates.
Government savings bonds that adjust for inflation. Key features: tax-deferred until redemption, state tax-exempt, $10,000 annual limit, must hold 1+ year (5-year hold avoids penalty). Great for long-term savings you won't need soon.
Building Consistent Saving Habits
Treat savings like a bill. Set up automatic transfers on payday, before you see the money. If you never see it, you won't miss it. This single habit is the difference between savers and non-savers.
- 50%: Needs (housing, food, utilities, insurance)
- 30%: Wants (entertainment, dining, hobbies)
- 20%: Savings and extra debt payments
Can't hit 20%? Start with 5% and increase by 1% each month until you reach your target.
Commit to saving 50%+ of unexpected money: tax refunds, bonuses, cash gifts, inheritance, side hustle income. This accelerates your goals without changing your daily budget.
Audit subscriptions, negotiate bills, switch to cheaper insurance. Redirect savings to your goals. Finding $100/month in "leaks" = $1,200/year + interest toward your dreams.
Most banks let you nickname accounts. "Hawaii 2025" or "Tesla Fund" feels more real than "Savings Account 2." Named goals are harder to raid for impulse purchases.
When you get a raise, immediately redirect at least 50% to savings before lifestyle inflation sets in. You won't miss money you never got used to having.
The Psychology of Saving
We naturally value $100 today more than $150 next year. This is why saving feels hard—future rewards seem abstract. Combat this by visualizing specifically what you'll do with the money.
Income rises, spending rises to match. The hedonic treadmill means upgrades stop feeling special quickly. The antidote: increase savings rate with every raise, maintaining rather than upgrading your lifestyle.
Others' spending creates pressure to match. But you don't see their debt or empty retirement accounts. Compare yourself to your past self: are you saving more than last year? That's success.
There's always a reason to delay. But every year you wait costs tens of thousands in lost compound growth. The best time to start was yesterday. The second best time is today.
Tax-Advantaged Savings Options
Employer-sponsored retirement accounts with huge tax benefits:
- Traditional: Contributions reduce taxable income now; taxed at withdrawal
- Roth: Contributions are after-tax; withdrawals are tax-free
- Employer match: Free money! Always contribute enough to get the full match
- 2024 limit: $23,000 ($30,500 if 50+)
Personal retirement accounts with similar tax benefits:
- Traditional IRA: Tax-deductible contributions, taxed at withdrawal
- Roth IRA: After-tax contributions, tax-free growth and withdrawal
- 2024 limit: $7,000 ($8,000 if 50+)
- Income limits: Roth has income limits; traditional deductibility may be limited
Triple tax advantage for those with high-deductible health plans:
- Tax-deductible contributions
- Tax-free growth
- Tax-free withdrawals for medical expenses
- 2024 limit: $4,150 individual, $8,300 family
Many people use HSAs as stealth retirement accounts: pay medical expenses out of pocket now, let HSA grow tax-free, withdraw tax-free for medical expenses in retirement.
Tax-advantaged education savings:
- Contributions grow tax-free
- Withdrawals tax-free for qualified education expenses
- Many states offer tax deductions for contributions
- Can now roll unused funds to Roth IRA (new rule)
Common Savings Calculator Mistakes to Avoid
Double-check your inputs. A mistyped number gives wrong results.
Verify you're reading the correct output field, especially with multiple results.
Results depend on input units. Ensure you're using the right units throughout.
For critical decisions, verify results with an additional source or method.