Independent savings calculator with compound interest

The savings calculator allows you to easily calculate how much you can save over a selected time period with compound interest. Let the calculator do the work for you!
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Calculate Savings with Compound Interest

Future Value:

Total Payments (Does not include Start Amount):

Total Interest:

What is Compound Interest: Growing Your Money Over Time

Have you ever wondered how money can grow over time? Well, there’s a fascinating concept called compound interest that can make your savings or investments grow faster than you might expect.
Money stacked.

Compound interest is like a magical force that helps your money multiply over time. In this article, we’ll explore what compound interest is, how it works, and why it’s important for your financial future.

What is Compound Interest?

Compound interest is the interest on savings or investments that is calculated not only on the initial amount of money you put in but also on the accumulated interest from previous periods. It’s like earning interest on your interest! This is different from simple interest, which is calculated only on the original amount.

To understand compound interest, let’s consider a simple example. Imagine you have $100 in a savings account that earns an annual interest rate of 5%. At the end of the first year, you would earn $5 in interest, bringing your total to $105. In the second year, you would earn interest not only on the initial $100 but also on the additional $5 of interest you earned in the first year. This compounding effect continues year after year, causing your money to grow at an accelerated rate.

The Power of Starting Early

One of the most important things to know about compound interest is that the earlier you start saving or investing, the more it can work in your favor. Even if you can only save small amounts, the power of compound interest can make a significant difference over time.

Let’s look at an example to illustrate this point. Suppose you start saving $100 per month at the age of 20. Assuming an average annual return of 4% compounded monthly, by the time you reach 65, you would have earned $151,550. Your total investment would have been $54,100. Now, imagine your twin sibling doesn’t start saving until age 50. They invest $5,000 initially and then $500 per month for 15 years, also earning a monthly compounded 4% return. By age 65, your twin would have earned only $132,147, even though they invested roughly twice the amount you did.

This example shows that starting early and being consistent with your savings can have a significant impact on your financial future. The longer your money has to compound, the more it can grow.

Benefits of Compound Interest

Compound interest offers several advantages that can help you build wealth and mitigate financial risks:

  1. Building Wealth: Compound interest allows your savings or investments to grow over time, as your returns earn returns. This compounding effect can significantly increase your wealth in the long run.

  2. Mitigating Wealth Erosion: Compound interest’s exponential growth can help counteract the effects of inflation, which reduces the purchasing power of your money. By earning interest on your interest, you can stay ahead of rising costs and protect your wealth.

  3. Loan Repayments: Compound interest can also work in your favor when repaying loans. By making more than the minimum payment, you can leverage the power of compounding to save on total interest.

How to use the savings calculator with compound interest

This calculator is designed to help you estimate the future value of your savings based on your initial deposit, the additional amount you plan to save regularly, and the estimated annual interest rate. Here's a simple guide to each of the fields in the calculator.

Video guide

Input fields

Start Amount

This is the amount of money you have saved already or plan to deposit as a starting amount in your savings account.

Annual Interest Rate (%)

This is the yearly interest rate offered by your bank or financial institution. It is expressed as a percentage. For example, if your bank offers an annual interest rate of 5%, you would enter "5" in this field.

Compound Frequency

Compounding refers to the process of earning interest on both the initial money you deposited and the interest you've already earned. The frequency of compounding can have a significant effect on your final savings. For example, if your bank compounds interest annually, it means the interest is added to your account once a year. If it's compounded monthly, the interest is calculated and added to your account every month. Choose the option that matches your bank's compounding frequency.

Number of Years

This is the length of time (in years) that you plan to leave your money in the savings account.

Additional Payment

If you plan to regularly add more money to your savings account (for example, every month or every year), enter that amount here.

Payment Frequency

This is how often you plan to make the additional payments. Choose the option that matches your plan.


After you click "Calculate", the calculator will show you:

Future Value

This is the estimated total amount of money you will have in your account after the specified number of years, including the initial deposit, regular additional payments, and all the interest you've earned.

Total Payments

This is the total amount of all the additional payments you've made over the years. It does not include the initial deposit (Start Amount).

Total Interest

This is the total amount of interest you've earned over the specified number of years.


Below the results, you'll see a chart that shows the growth of your savings over time. The 'Principal + Payments' line shows the total amount of your initial deposit and regular additional payments. The 'Balance/Growth' line shows the total amount in your account, including interest.


Remember, this calculator provides estimates, not exact figures. Always consult with a financial advisor or your bank for precise financial planning.
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