This savings calculator can help you calculate the interest you’ll earn on a savings account. You can include both an initial deposit and monthly contributions. Indicate how long you’ll make the contributions and your APY, and the savings account calculator returns your total savings.
How to Use the Savings Calculator
The savings calculator requires just four numbers:
Initial Deposit: The amount of money you plan to deposit when you open the account. If the account is already open, the initial deposit should be your current balance.
Monthly Contribution: The amount of money, if any, you plan to save each month.
Number of Years: The length of time, in years, you plan to save.
Annual Percentage Yield: The APY is the interest rate you’ll earn on the savings account. APY accounts for the effects of compounding and is available from your bank.
While the average interest rate is 0.07%, according to the FDIC, you can do much better with an online bank.
3 Ways a Saving Calculator Can Help You Plan
Savings on a High-Yield Savings Account
The savings calculator can help you determine how much money you’ll have after a set number of years contributing to a high-yield savings account.
Emergency Fund Savings
Building an emergency fund is an important step toward financial freedom. One rule of thumb is that you should save three to six months of expenses. You can use the savings calculator to estimate how long it will take you to reach this goal.
Savings in a CD
With a certificate of deposit, you make an initial deposit but no monthly contributions. This calculator can handle it. Simply enter the initial deposit and leave the monthly contribution field blank. Add in the term of the CD in years and the APY.