Savings Growth Calculator

Calculate how your savings grow over time with compound interest and regular deposits to plan emergency funds, down payments, and financial goals.

Use Cases

This savings growth calculator is perfect for emergency fund planning, saving for down payments, vacation funds, education savings, car purchase planning, and any goal-based savings strategy.

What is Savings Growth?

Savings growth is the increase in your savings account balance over time through compound interest and regular deposits. Interest compounds on both your principal and previously earned interest.

Savings Growth Formula

Calculating future savings with regular deposits:

FV = PV \times \left(1 + \frac{r}{n}\right)^{n \times t} + PMT \times \frac{\left(1 + r_c\right)^{n_c} - 1}{r_c}

Where:

$FV$ = Future savings balance
$PV$ = Initial deposit
$PMT$ = Regular deposit amount
$r$ = Annual interest rate (APY as decimal)
$n$ = Compounding frequency (usually daily or monthly)
$t$ = Time in years
$r_c$ = Rate per deposit period
$n_c$ = Total number of deposits

Math.js Expression:

initial_deposit = 5000;
annual_rate = 0.045;  # 4.5% APY
compounding_frequency = 365;  # Daily compounding
time_years = 5;
monthly_deposit = 300;

# Future value of initial deposit
fv_initial = initial_deposit * (1 + annual_rate / compounding_frequency)^(compounding_frequency * time_years);

# Future value of monthly deposits
total_deposits = time_years * 12;
rate_per_deposit = ((1 + annual_rate / compounding_frequency)^(compounding_frequency / 12)) - 1;
fv_deposits = monthly_deposit * (((1 + rate_per_deposit)^total_deposits - 1) / rate_per_deposit);

# Total savings
total_savings = fv_initial + fv_deposits;
total_savings

Example Calculation

Savings Goal: Emergency Fund

Initial Deposit: $2,000
Monthly Deposit: $400
Interest Rate: 4.5% APY
Time Period: 3 years
Compounding: Daily

Step 1: Calculate Initial Deposit Growth

initial_deposit = 2000;
annual_rate = 0.045;
time_years = 3;
compounding_frequency = 365;

fv_initial = initial_deposit * (1 + annual_rate / compounding_frequency)^(compounding_frequency * time_years);
fv_initial  # $2,288.19

Step 2: Calculate Monthly Deposit Growth

monthly_deposit = 400;
total_deposits = 3 * 12;  # 36 deposits
rate_per_deposit = ((1 + 0.045 / 365)^(365 / 12)) - 1;

fv_deposits = monthly_deposit * (((1 + rate_per_deposit)^total_deposits - 1) / rate_per_deposit);
fv_deposits  # $15,563.48

Step 3: Calculate Total Savings

total_savings = fv_initial + fv_deposits;
total_deposits_made = 2000 + (400 * 36);
interest_earned = total_savings - total_deposits_made;

total_savings  # $17,851.67
total_deposits_made  # $16,400
interest_earned  # $1,451.67

High-Yield Savings Account Rates

Account Type	Typical APY Range
Traditional Savings	0.01% - 0.10%
High-Yield Savings	3.50% - 5.00%
Money Market	3.00% - 4.50%
Certificates of Deposit (1-year)	4.00% - 5.50%
Certificates of Deposit (5-year)	3.50% - 5.00%

Rates as of 2026. Shop online banks for highest yields.

Savings Goals by Purpose

Emergency Fund

Goal: 3-6 months of expenses
Recommended Account: High-yield savings (liquid, FDIC-insured)
Example: $30,000 emergency fund at 4% APY earns$ 1,200/year

Down Payment (House)

Goal: 20% of home price to avoid PMI
Timeline: 3-7 years
Example: Save $400/month at 4.5% for 7 years =$ 38,000+

Vacation Fund

Goal: $3,000-$ 10,000
Timeline: 1-2 years
Example: Save $300/month at 4% for 12 months =$ 3,673

Car Purchase

Goal: $20,000-$ 40,000
Timeline: 2-5 years
Example: Save $600/month at 4.5% for 4 years =$ 31,000+

Examples

$1,000 initial +$ 200/month at 4% for 5 years = $13,698 (total deposits:$ 13,000)
$5,000 initial +$ 300/month at 4.5% for 3 years = $17,852 (total deposits:$ 16,400)
$10,000 initial +$ 500/month at 5% for 10 years = $88,680 (total deposits:$ 70,000)
$500 initial +$ 150/month at 3.5% for 2 years = $4,241 (total deposits:$ 4,100)

Maximizing Savings Growth

Choose High-Yield Accounts

Online banks typically offer 4-5% APY vs. 0.01% at traditional banks. On $20,000, that's$ 1,000/year vs. $2/year.

Automate Deposits

Set up automatic transfers on payday to ensure consistent saving without willpower required.

Increase Deposits Over Time

Raise monthly deposits by 5-10% annually as income grows to accelerate progress toward goals.

Take Advantage of Bonuses

Many banks offer $200-$ 500 bonuses for new accounts with minimum deposits. Read terms carefully.

Common Mistakes & Tips

Using Low-Interest Accounts: Keeping savings in accounts with 0.01% APY costs hundreds or thousands in lost interest. Shop for high-yield options.

Not Having Clear Goals: Specific goals (“$30,000 emergency fund by 2028”) motivate better than vague intentions to “save more.”

Dipping Into Savings Frequently: Withdrawals interrupt compound growth and deplete funds. Maintain a separate checking buffer for variable expenses.

Keeping All Savings in One Place: Ladder CDs for better rates on longer-term savings while keeping emergency funds in liquid high-yield savings.

Ignoring Inflation: 3% inflation erodes purchasing power. Your savings rate should exceed inflation to grow real wealth.

Frequently Asked Questions

How much should I save each month?

Financial experts recommend saving 20% of gross income: 15% for retirement, 5% for other goals. Start with any amount and increase gradually.

What’s the difference between APR and APY?

APY (Annual Percentage Yield) includes compound interest effects and shows actual earnings. APR doesn’t account for compounding. For savings, APY is the relevant number.

Is my savings account FDIC insured?

Most U.S. bank accounts are FDIC-insured up to $250,000 per depositor, per bank. Credit unions offer equivalent NCUA insurance. Verify before opening.

Should I use a savings account or investment account?

Use high-yield savings for emergency funds and goals under 5 years (safety priority). Use investment accounts for retirement and 5+ year goals (growth priority).

How long does it take to save $10,000?

Depends on deposit amount and interest. At $300/month with 4% APY, you'll reach$ 10,000 in about 31 months. Use this calculator for your specific scenario.

Can I lose money in a savings account?

FDIC-insured accounts won’t lose principal, but inflation can erode purchasing power if interest doesn’t keep pace. A 4% APY account maintains value with 3% inflation.

Investment Calculator - Long-term investment growth
Compound Interest Calculator - Detailed interest calculations
Inflation Calculator - Adjust for purchasing power
Monthly Mortgage Calculator - Plan home down payments

Initial Principal (USD):	Currency
Annual Interest Rate (%):	%
Annual Inflation Rate (%):	%
Time Period:	yrs mo
Compounding Frequency:	Times per year (1=Annually, 4=Quarterly, 12=Monthly, 365=Daily)
Regular Contribution (USD):
Contribution Frequency:	Times per year (1=Annually, 12=Monthly, 52=Weekly)

Savings Growth Calculator