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This simple savings calculator can show you how to build your savings, or to reach any savings goal you have, just by inputting four pieces of information.

How the simple savings calculator works

The savings account interest calculator uses two different methods – Monthly Deposit and Savings Goal. The Monthly Deposit method focuses on the outcome of making regular deposits. The Savings Goal sets your savings target, then helps you determine the monthly deposits you’ll need to reach a specific savings goal.

Either method can also serve to help you as a retirement savings calculator, as well since at least some of your retirement savings should be held in interest-bearing investments. 

Let’s work examples using each of the two methods.

The monthly deposit method 

Using the monthly deposit method, you’ll need to enter four pieces of information:

  • Initial amount – this is your current savings balance.
  • Monthly deposit – enter how much you expect to deposit into savings each month.
  • Annual interest (compounded monthly) –  enter the interest rate you expect to earn on your savings based on current rates.
  • Number of years – enter the number of years you plan to make monthly deposits using the slide to the right.

We’ll use the following input information: 

  • Initial amount: $5,000.
  • Monthly deposit: $500.
  • Annual interest (compounded monthly): 2.00%.
  • Number of years: 10.

Once the information is entered, you’ll hit the “Calculate” button in the middle of the Simple Savings Calculator to get your results.

With the input provided above, the results will be as follows: 

  • Total contributions: $65,000 (which includes your initial deposit)
  • Interest earned: $7,465.83 (which is your cumulative interest earned over the 10-year time frame)
  • Final savings: $72,465.83 (this the combination of your contributions and interest earned)  

Once again, the Monthly Deposit method is the one you should use if you want to determine the outcome of your current savings plan.

Related: Best high-yield savings accounts

The savings goal method

The savings goal method also requires you to enter four pieces of information:

  • Initial amount – this is your current savings balance
  • Savings goal – this is how much you hope to have saved by your desired target date
  • Annual interest (compounded monthly) –  enter the interest rate you expect to earn on your savings based on current rates
  • Number of years – enter the number of years you plan to make monthly deposits using the slide to the right

We’ll enter the following input information:

  • Initial amount: $5,000
  • Savings goal: $100,000
  • Annual interest (compounded monthly): 2.00%
  • Number of years: 10

Once the four pieces of information are entered, you’ll hit the “Calculate” button in the middle of the Simple Savings Calculator screen to get your results.

The calculator will provide the following results: 

  • Estimated monthly deposit needed to reach goal: $759.07
  • Total contributions in savings term: $$96,088.40 (which once again also includes your initial deposit)
  • Interest earned in savings term: $3,911.60 (which is your cumulative interest earned over the 10-year time frame)

You’ll want to use the Savings Goal Method if you want to set a specific savings level target, and need to know what you’ll have to do to reach it.

In this way, the Savings Goal Method works more closely as a retirement savings calculator, helping you to determine how much you’ll need to save on a monthly basis to be prepared for retirement.

Summary

The Money Under 30 Savings Interest Calculator lets you determine what interest you’ll earn on your savings accounts. It does this by looking at your monthly deposit or savings goals.

See what you could really be earning in your savings account!

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About the author

Kevin Mercadante
Total Articles: 143
Since 2009, Kevin Mercadante has been sharing his journey from a washed-up mortgage loan officer emerging from the Financial Meltdown as a contract/self-employed “slash worker” – accountant/blogger/freelance web content writer – on Out of Your Rut.com. He offers career strategies, from dealing with under-employment to transitioning into self-employment, and provides “Alt-retirement strategies” for the vast majority who won’t retire to the beach as millionaires. He also frequently discusses the big-picture trends that are putting the squeeze on the bottom 90%, offering work-arounds and expense cutting tips to help readers carve out more money to save in their budgets – a.k.a., breaking the “savings barrier” and transitioning from debtor to saver. He’s a regular contributor/staff writer for as many as a dozen financial blogs and websites, including Money Under 30, Investor Junkie and The Dough Roller.
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