This savings calculator estimates the final balance and the total interest earned on your savings account with or without annual deposits and regular monthly contributions over a certain period of time. There is in depth information on this topic below the form.

Starting principal:*
Annual deposit:
Regular contribution frequency:
Regular contribution value:
Annual interest rate:*
Savings made for (term):*

How does this savings calculator work?

This personal finance calculator can help you forecast your savings account growth and total interest earned over time. Thus it may prove useful anytime whether you may need to check whether you will achieve your savings goal within a certain time frame. In order determine all these figures you have to provide the following information:

  • Starting principal you have available to invest;

  • Annual deposit value if applicable;

  • Regular contribution frequency you intent to place at the end of each compounding period. Please note that in order to simplify this calculation, the regular contribution frequency gives as well the interest compounding frequency. For instance in case of a regular monthly adding the interest gets compounded on a monthly basis too.

  • Regular contribution amount if the case.

  • Annual interest rate which is the same over the period specified.

  • Number of years the savings account is kept.

The algorithm behind this savings calculator applies the formulas detailed here:

-  End balance after over a specific period = [A]

[A]=PV * ((1+i/100*T)^n) + PMT/(i/100*T) * ((1+i/100*T)^n-1) + AD *  ((1+IAD)^ ST)-1)/(IAD)

- Total principal saved (initial deposit + regular adds) = [B]

[B] = PV + (PMT * T)

-  Total interest earned = [C]

[C] = [A] - [B]

Total number of regular contributions = [D]

[D] = n.


AD = Annual deposit

PV = Starting principal

PMT = Regular deposit contribution

I = Annual interest rate

ST = Savings made for (term)

IAD = ((1+i/100*T)^ST)-1;

n = ST * T. Where T depends on the contributions frequency:

- Weekly - T value is 52

- Every two weeks - T value is 26

- Monthly - T value is 12

- Every two months - T value is 6

- Quarterly - T value is 4

- Semi-annually - T value is 2

- Annually - T value is 1.

Example of a result

Let’s assume that an individual starts with an initial investment of $10,000, and then he is permanently adding an yearly deposit of $5,000 and a regular monthly contribution of $1,000 at an interest rate of 4.5% over the next 10 years.

End balance after 10 years = $228,578.38

Total principal saved = $180,000.00

Total interest earned = $48,578.38

Total number of regular contributions = 120.00

Savings account definition

Saving accounts are a type of bank account maintained by banks and similar financial institutions that pay interest for the cash individuals or entities deposit either by a one time investment, or by a one time deposit plus regularly contributions or consisting in regular/occasional deposits only. Money saved this way cannot be accessed any time, but according to the specifications and terms of the agreement.

The role of the savings account is to allow customers set aside a portion of their liquid assets while earning some interest on their cash over a specific period of time and at a given interest rate (simple or compound interest).

On the other hand, for the financial institutions these funds constitute a source to run their own business, meaning that they can use these funds to finance other people or entities through loans of any type.

Few reasons why you should start saving today

  • You can secure the future of your family or your own future;

  • You can easily get a credit or even a mortgage in case you have a down payment;

  • You earn interest on money you save;

  • You can finance any plans you may have;

  • You can buy a new car or any goods with cash available;

  • You may use savings to finance any unwanted events;

  • You can temporarily use this cash to pay off your regular debts in case you lose your job.

18 Feb, 2015