Savings Calculator
Saving money is simple in theory and hard in practice, mostly because it is difficult to see what small, regular deposits become over time. This free savings calculator makes that future visible. Enter your starting deposit, the amount you can add each month, your account's APY, and how many years you plan to save, and it shows your future balance, how much you deposited, and how much interest did the work for you. The yearly growth table shows the balance climbing year by year, which is surprisingly motivating when you are saving for an emergency fund, a house down payment, or a holiday. You can also use it to compare accounts: try a regular savings account at 0.5% APY next to a high-yield account at 4.5% APY and see how many thousands of dollars the rate difference is worth. The same math works for certificates of deposit (CDs), where you usually make one deposit and leave it alone for a fixed term. Whatever you are saving for, the habit matters more than the starting amount — but a better rate makes the habit pay off faster.
Your Savings Projection
Future value
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Growth Year by Year
How to Use This Calculator
- Enter your initial deposit. This is the lump sum you are starting with. If you are starting from zero, enter 0 — the calculator works just as well for regular monthly deposits alone.
- Enter your monthly deposit. Pick an amount you can afford every month without fail. Automating this transfer on payday is the single best way to make sure it actually happens.
- Enter the APY and the number of years. Use the APY shown by your bank, not the APR, since APY already includes compounding. Try 5 years for a medium-term goal and 10 or more for a house deposit.
- Compare options. Change the rate to compare a high-yield savings account with a regular one, or set the monthly deposit to 0 to see how a CD would grow on its own. Pick the account with the best balance of rate, access, and fees.
Worked Example
Suppose you deposit $10,000 into a high-yield savings account paying 4.5% APY and leave it untouched for 5 years, with no monthly deposits. APY is an effective annual rate, so each year the balance is multiplied by 1.045. After one year you have $10,450, after two years $10,920.25, and after five years you have $12,462 — that is $10,000 × 1.0455. You earned $2,462 in interest without adding another dollar. Now add a monthly deposit of $100, the calculator's default. You deposit $6,000 more over the five years, and those deposits earn interest too, so the final balance rises to about $19,161. Your total deposits are $16,000 and your total interest is about $3,161. Compare that with the same $10,000 in a regular account paying only 0.5% APY: after five years it would be worth just $10,253. The rate difference alone is worth more than $2,200 on the initial deposit, which is why shopping around for a high-yield account is worth an hour of your time.
Frequently Asked Questions
What is APY on a savings account?
APY, or annual percentage yield, is the effective yearly return on your savings once compounding is included. A 4.5% APY account turns $10,000 into $10,450 after one year if you make no deposits or withdrawals. APY is the fairest way to compare accounts, because it already accounts for how often interest compounds.
What is the difference between APR and APY?
APR is a simple annual rate that does not include compounding, and it is usually quoted for loans. APY includes compounding, so it shows what you actually earn on savings. For the same nominal rate, APY is always a little higher than APR when interest compounds more than once a year. When comparing savings accounts, always compare APY to APY.
How does compound interest work on savings?
Compound interest means you earn interest on your interest. Each period, the bank pays interest on your full balance, including the interest it paid last period. That is why a balance grows faster over time, and why leaving money untouched for years matters so much. Monthly deposits add to the effect, because each new deposit starts earning interest too.
Should I choose a high-yield savings account or a CD?
Choose a high-yield savings account if you want flexible access to your money and a rate that can rise or fall. Choose a certificate of deposit (CD) if you can lock money away for a fixed term, usually 3 months to 5 years, in exchange for a fixed rate that will not drop. Many people use both: a savings account for emergencies and a CD ladder for money they will not need soon.
How much interest will $10,000 earn in 5 years?
At 4.5% APY with no deposits or withdrawals, $10,000 grows to $12,462 after 5 years, earning $2,462 in interest. Adding $100 a month at the same rate grows the balance to about $19,161 instead. Your actual result depends on the APY, how long you leave the money alone, and whether you keep adding to it.