Use this savings calculator to determine exactly how much money you should put away each month to meet your savings goal, whether it’s one year, five years, 10 years, or longer.
When you tap into the power of compound interest, your savings build by more than just the amount you put in because you start earning interest on your interest.
Savings Account Calculator Instructions
To use the savings calculator, fill out the following information. You can try different scenarios to see how much you could save over the short or long term.
Step 1: Input Your Starting Balance
What is the amount of your initial deposit? You’ll enter that here. Try using different amounts to see the result.
Step 2: Add Your Monthly Contribution
How much will you be adding per month? If you plan to add a weekly amount, multiply that amount by 52 and divide by 12. For instance, if you’re adding $100 a week, that’s $5,200 for the year or $433.33 per month.
Step 3: Add Your Annual Interest Rate
Enter the annual percentage yield you’ll receive on your money. You can shop around for banks offering higher interest rates and other places to save your money, such as CDs and money market accounts. Try plugging in different APYs to see how just a few percentage points could add up.
Step 4: Enter the Time to Grow
Input the amount of time you have to save. Are you looking to buy a home in the next five years, and you’re trying to save for a down payment? Maybe you’re trying to save for a new addition to the family in nine months. No matter how long or how short your timeframe, this will let you know how much money you’ll have at the end of that time. If that amount is insufficient, change the amount you start with or put away each month.
Find the Best Savings Account Rates
Finding the banks with the best savings accounts to meet your needs is as simple as checking out our list below. Compare rates, fees, accessibility, and more.
Smart Tip: Because interest rates and amounts you can afford to save change over time, experiment with the savings goal calculator to see how plugging in different amounts affects your results. Resetting your target date, for example, could help you understand when your savings goal becomes feasible for your budget.
How to Find the Best Savings Account
Shopping for a savings account and deciding on the right one involves ensuring your money is secure and earning the best possible return. Here’s how to go about it.
Determine Your Savings Goals
Consider your savings objectives, whether an emergency fund, a down payment, a vacation, or other financial goals. Knowing what you’re saving for will help you decide on the type of account and how you manage it.
Understand Account Types
- Regular Savings Accounts: These offer easy access to your money and are suitable for short-term savings or emergency funds.
- High-Yield Savings Accounts: These typically offer higher interest rates, making them ideal for longer-term savings goals.
Compare Interest Rates
Look for savings accounts with competitive interest rates. Online banks and credit unions often offer higher rates than traditional banks.
Check for Fees
Some accounts have monthly maintenance fees or transaction fees. Look for funds with no or minimal fees to maximize your savings.
Minimum Balance Requirements
Be aware of minimum balance requirements. Some accounts require you to maintain a certain balance to avoid fees.
Ensure the account offers convenient access to your funds through ATMs, online banking, mobile apps, or in-person visits, depending on your preferences.
FDIC or NCUA Insurance
Verify that your savings account is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). This insurance protects your deposits.
Read Account Terms
Carefully read the terms and conditions of the account, including withdrawal limits and any penalties for early withdrawals.
Consider Customer Service
Assess the quality of customer service provided by the financial institution, as you may need assistance or have questions in the future.
Explore Account Features
Look for features like automatic transfers, sub-accounts, and tools for tracking and managing your savings.
Open an Account
Once you’ve compared various savings accounts, choose the one that best aligns with your needs and goals and open the account.
Set Up Automatic Transfers
Automate your savings by setting up regular transfers from your checking account to your savings account. This ensures consistency in saving.
Monitor and Adjust
Regularly review your savings progress and adjust as needed to meet your goals.
Remember that the right savings account can depend on your specific financial situation and goals. What works for one person may not be the best choice for another. By considering your individual needs, you can find the savings account that’s most suitable for you.
How to Save Money Fast
When you’re serious about reaching financial goals, set SMART targets. These are targets that are:
The savings goal calculator can help you set and achieve your SMART savings goals by helping you:
- Break your larger goal into precise amounts that fit your budget.
- Refine your goal to make sure it is attainable.
- Determine when you will reach your goal.
- Compare current interest rates.
Frequently Asked Questions
How much to save for a down payment depends on many factors, such as how much homes are in your area, whether you’re a first-time home buyer, and how good your credit is. If you have good credit and are a first-time buyer, you may qualify to put as little as 3% of a home’s purchase price as a down payment. If you live in an area where home prices are high, you may need to save considerably more.
That’s a good amount to put into monthly savings, but how much you’ll earn will depend on how much interest you earn and how long you save. If you do this for five years assuming 1% interest, you’ll earn a whopping $1,550.30 in interest and save up $62,550.30. In many areas of the country, this would be a sufficient down payment for a house.
Even if you weren’t earning any interest, saving money is a worthwhile endeavor. The most important reason to save money is for an emergency fund. You should have three to six month’s worth of your income saved in case of job loss, and you should also have money set aside for other emergencies that may come your way, such as car repairs.
Compare rates for several different banks and accounts based on how much you can start with and how much you plan to save. MoneyRates has up-to-date rates and will help keep you in the loop when rates change or a new offer comes on board.