Savings Interest Calculator
Our free savings interest calculator is a practical strategy for visualizing the growth of your savings in an interest-bearing account. This simple interest calculator helps you evaluate multiple savings scenarios by altering key factors such as interest rates, deposits, compounding frequency, and your savings duration. By fine-tuning these variables, you gain a clearer perspective for making informed decisions about which savings account to open. Follow these
Input your starting savings amount:Begin by entering your initial savings amount. This is the amount you’ve already saved or plan to start with. If you’re starting from scratch, don’t worry, enter ‘0’.
Add your additional contributions os “ongoing savings”:While optional, enhancing your savings account with extra contributions significantly accelerates your savings growth. By doing so, you’re not just increasing your savings but also expanding the principal that generates interest. By inputting your regular monthly deposits into the free savings interest calculator, you can visualize the substantial impact these deposits have on your overall returns.
Set the interest rate:Now, enter the interest rate you expect to earn. You can usually find this on your savings account statement or advertised on a bank’s website. If you’re using a high-interest savings account, the rate could be much higher than traditional savings accounts. To find the best interest rates, check out our high interest savings accounts review page, where we provide a list of the highest yield accounts available. Beware of nearly all articles online that claim the top yielding savings accounts, as they are incentivized to promote banks that pay for referrals.
Choose the savings duration:Finally, decide how long you plan to save. This could be a set number of years until retirement or a shorter-term goal, like a down payment for a house.
Analyze the results:After filling in all the fields, review the results in the graph to the left and compare with the average rates provided below the graph. Our free savings calculator will estimate how much you’ll have at the end of your chosen period, taking into account your initial amount, monthly savings, interest rate, and the power of compound interest. It’s important to note that interest rates fluctuate over time, and you should regularly use the calculator with updated numbers to accurately track the projected growth of your savings.
Using a simple savings calculator can be a powerful tool for visualizing your savings growth and keeping you motivated towards your financial goals. By following these steps, you’ll gain a better understanding of your savings trajectory, helping you make more informed decisions about your money saving strategies.
How to Maximize your Savings
Regardless of your savings objectives, various strategies can help optimize your savings growth. Initially, look for a savings account offering the highest interest rate. This ensures that your savings, regardless of the initial amount, will proliferate faster than in accounts with lower interest rates. Remember, many savings accounts offer higher interest rates for larger account balances. Do not forget that a simple google search for the account with the highest interest is likely to land you on a website that is paid to promote accounts that provide kick-backs for referring readers.
After identifying an account with an optimal interest rate, consider how much you can feasibly deposit into this account. Although a hefty initial deposit can spur your savings growth, it may not be prudent to invest all available funds immediately. It could be more beneficial to determine a comfortable starting amount, and then incrementally increase your contributions over time.
Further augment your savings by establishing monthly transfers to your savings account. These regular deposits, although not necessarily large, supplement your initial deposit and provide a larger principal for interest accrual. Setting up an automatic deposit from your paycheck or checking account can streamline this process, accelerating your progress towards your financial goals with these additional contributions.