Savings Calculator

Calculate how your savings will grow with regular monthly deposits and compound interest.

FV = P(1 + r)^n + PMT x [((1 + r)^n - 1) / r], where P=initial deposit, r=monthly rate, n=months, PMT=monthly deposit
$5,000 initial + $200/month at 4% APY for 10 years: Future value = $35,765, Total deposits = $29,000, Interest earned = $6,765

How much should I save each month?

Financial experts recommend the 50/30/20 rule: 50% for needs, 30% for wants, 20% for savings and debt repayment. If you earn $4,000/month, aim to save $800. Start with what you can afford and increase gradually. Even $50-100/month builds significant wealth over time through compound interest.

What is a good savings account interest rate?

As of 2024, traditional savings accounts offer 0.01-0.5% APY, while high-yield online savings accounts offer 4-5% APY. Certificates of Deposit (CDs) offer 4-5.5% for fixed terms. Always compare rates and choose FDIC-insured accounts. Even 1% difference compounds to thousands over decades.

How much should I have in emergency savings?

Aim for 3-6 months of essential expenses (rent, food, utilities, insurance). If you earn $50,000/year ($4,166/month), target $12,500-25,000 in liquid savings. Start with $1,000, then build to one month, then three months. Keep emergency funds in high-yield savings for easy access.

Should I save or invest my money?

Both! Save 3-6 months expenses in high-yield savings for emergencies. Invest long-term money (5+ years) in retirement accounts and index funds for higher returns (7-10% vs 4-5% savings). Younger? Invest more. Older or risk-averse? Save more. Diversify based on your goals and timeline.