See exactly how your savings grow with regular contributions and compound interest.
Use A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) − 1) ÷ (r/n)], where P is starting balance, PMT is monthly contribution, r is annual rate as a decimal, n is compounds per year, and t is years. Example: $5,000 plus $200/month at 4.5% for 10 years = $35,656.
Enter your starting balance, monthly deposit amount, annual interest rate, and how many years you want to save. The calculator compounds interest monthly by default and shows your balance growing year by year. You can switch to daily, quarterly, or annual compounding to match your actual account type.
The 50/30/20 rule suggests putting 20% of take-home income toward savings and debt. For retirement specifically, most planners recommend saving at least 15% of gross income, including any employer match. If you're starting late, higher percentages are needed. Use the calculator to experiment with different monthly amounts to see what hits your goal.
Traditional savings accounts at major banks often pay 0.01-0.5% APY. High-yield savings accounts at online banks typically pay 4-5% APY (tied to the Federal Reserve rate). For money you need within 1-3 years, an HYSA is one of the best low-risk options available. Enter 4.5% or 5% in the rate field to see what your savings could earn right now.
The most powerful variable is time. $300 per month at 5% for 10 years grows to about $46,500. The same amount for 30 years grows to over $249,000. Starting five years earlier can add more to your final balance than doubling your monthly contribution.