## Savings Calculator Overview

**Contents**show

# Savings Calculator

## How to Use a Savings Calculator

Savings calculators provide an estimated estimate of how your money will grow in an investment account over a certain timeframe, taking into account various factors like initial deposit amount, monthly contributions and expected interest rate.

As prices fluctuate over time, inflation must also be considered when planning. Rising costs can reduce the purchasing power of savings accounts over time - so it's crucial that we plan accordingly.

## Current Savings Amount

Savings are an integral component of financial planning. From creating an emergency fund to saving for home down payments or retirement planning, savings calculators can help you meet your goals more easily. They can show how savings accumulate over time through regular contributions and interest.

To use this calculator, begin by inputting your initial deposit amount. This could be either one lump sum payment or multiple smaller ones; larger deposits will help your savings to grow more rapidly than smaller ones. Next, enter how often and when you want to deposit into a tax deferred account so it can calculate total deposits made as well as balance at maturity plus interest earned; also enter tax rates you expect to pay per period and subtract them from savings value at end.

The calculator will determine how long it will take you to save up your goal based on your starting savings balance, monthly contributions and annual interest rate. As more money is saved at higher interest rates, more rapidly your savings will grow.

The Current Savings Calculator not only shows you the growth of your savings over time, but it can also assist in setting realistic savings goals. With its date feature you can set specific deadlines to reach goals such as trips or home mortgage payments.

If you haven't already, Current offers an easy and straightforward way to start saving and tracking your progress towards reaching your goals. Take advantage of Spending Plan tools for deeper insight into spending habits and establish effective money habits; in addition, Teen Accounts make it simple for parents to set spending limits for their child's accounts so that he or she is saving a fair portion of allowance each month.

## Monthly Contribution

Savings Calculator goes beyond simply calculating the total value of your savings to help you see how making regular contributions can yield better results by compounding, which is also known as "interest on interest." With compounding, your initial amount will grow steadily over time allowing you to save even more and delay debt repayment.

The calculator allows you to choose your frequency of contribution or investment period - including weekly, bi-weekly, monthly, quarterly and annually contributions - as well as include withdrawals and/or percentage of interest earned for reporting purposes. Furthermore, it gives an estimate value at various timeframes including retirement age based on current annual contribution rate and assumed 3 percent return per annum.

This calculator shows how your contributions are expected to expand over time using a pie chart. It displays your initial amount in purple, contributions made each year in green, and interest earned in blue - giving you valuable information that could help determine your future income, how quickly it will reach goals or the amount saved needed to meet certain interest rates.

Charity organizations rely heavily on having monthly contributors as they enable them to budget correctly and secure a steady source of funds for the organization. Knowing exactly how much will come in each month allows them to plan events and market their organization effectively; additionally, this enables others to join as donors to help those in need.

MoneyGeek's Savings Calculator uses a similar format to demonstrate the impact of your contributions over time. The table displays your initial amount in purple, contributions made in green and any interest earned in blue - you can even change your interest rate to see how your balance grows or shrinks over time.

## Interest Rate

Your choice of interest rate plays a critical role in how quickly your savings will grow, so this calculator allows you to test various rates, deposits and compounding frequencies to see how different options might impact your savings potential. For instance, try out different scenarios where an initial deposit grows with and without regular monthly contributions to determine which option might work best. You can also compare top savings accounts in order to identify suitable savings solutions for yourself.

No matter if it's for savings or investment purposes, interest rate should always be your top consideration. A higher interest rate means your money will grow more rapidly over time - select an interest rate which best matches both your goals and budget requirements.

Interest can be calculated by multiplying the principal balance (or starting balance) by its associated interest rate, then dividing by the period length such as years, months, weeks or days to reach an estimate of how much was earned during that time period. This figure represents interest earned during that period.

To calculate simple interest, divide the principal by its annual percentage rate (APR) and multiply that figure by the number of periods per year. Or you could use P R / T as an alternative way of determining this amount.

Savings accounts tend to offer low interest rates, yet you can still see your money grow with regular deposits of a large sum and adding to it each month. Furthermore, high yield savings accounts offer even higher yields of interest on investments.

The Rule of 72 provides a straightforward method for estimating how long your savings and investments will need to double, simply divide your interest rate by 72 and multiply that figure by the length of time invested (in years). This gives an approximate number of years needed.

depending on your financial circumstances and goals, saving more than suggested by this calculator might be wise. Consult with a financial professional for personalized advice tailored specifically to you.

## End Investment Value

End Investment Value refers to the total desired sum at the conclusion of an investment period and results from compounded return and initial capital. It allows comparison of different forms of investments as they approach maturity.

Calculating an End Investment Value can be complex and depend on numerous variables. In general, however, it works by taking the starting amount of capital and adding it to the ending value after calculating interest earned over its investment time period - then calculating an annualized return as a percentage of that initial sum.

Bankrate does not provide advisory or brokerage services and should not be seen as offering financial advice; for that purpose, this calculator serves only to give an approximate estimate. In particular, our Investment Calculator should only be used to help determine one specific parameter of an investment plan using specific inputs; if more precise calculations are desired for particular investments such as certificates of deposit (CDs) then please check out our CD Calculator instead.