Savings Calculator
Calculate savings growth
Frequently Asked Questions
How much will my savings grow over time?
Use the compound interest formula: FV = PV(1+r/n)^(nt) + PMT×(((1+r/n)^(nt)-1)/(r/n)). $10,000 initial + $500/month at 5% for 10 years grows to approximately $94,000. The calculator shows year-by-year growth.
How much should I save each month?
The 50/30/20 rule suggests saving 20% of after-tax income. For a $4,000 monthly take-home: save $800. The calculator can work backwards — enter your goal amount and timeline to find the required monthly savings.
What is the difference between savings account and CD rates?
Savings accounts offer flexibility with lower rates (typically 0.5-5% APY). CDs lock your money for a fixed term (3 months to 5 years) at higher rates. The calculator compares growth under different rate scenarios.
How does inflation affect my savings?
If your savings earn 3% but inflation is 3.5%, your real return is -0.5%. Your money grows nominally but loses purchasing power. The calculator shows both nominal and inflation-adjusted future values.
What is the emergency fund rule?
Financial advisors recommend saving 3-6 months of essential expenses. If monthly expenses are $3,000, target $9,000-$18,000. The calculator can determine how long it takes to build your emergency fund at your current savings rate.