Savings Calculator
Project future savings accumulation with recurring contributions and compound interest schedules.
Last verified: September 2026Inputs & Parameters
Calculation Results
Savings growth projected with regular monthly deposits and monthly compounding.
How Compound Savings Growth Works
A savings calculator projects how an initial deposit grows when combined with periodic regular contributions and compounded interest over time. Unlike simple interest, compound interest earns return on both the initial principal and accumulated prior interest.
Core Mathematical Formulas
- Compound Balance:
A = P × (1 + r/n)^(n×t) + PMT × [((1 + r/n)^(n×t) - 1) / (r/n)] - Total Contributions:
Total Deposits = Initial Principal + (Monthly Contribution × 12 × t) - Total Interest Earned:
Interest = Final Balance - Total Deposits
Worked Example
An initial deposit of $5,000.00 with $250.00/month contributions at 5.00% annual interest compounded monthly for 5 years:
1. Total Principal Deposited = $5,000.00 + ($250.00 × 60) = $20,000.00
2. Compound Future Value = $23,833.86
3. Total Interest Earned = $23,833.86 - $20,000.00 = $3,833.86
Assumptions & Limitations
Calculations assume a constant nominal interest rate throughout the holding period with regular end-of-period deposits. Tax liabilities on accrued interest and account maintenance fees are excluded.