Savings Plan Calculator

Enter the monthly deposit, the interest rate and how many months you will keep saving. The calculator totals what you deposit and the interest each deposit earns until the end date.

How to use the savings plan calculator

1. Monthly deposit: the amount you will move into savings each month, for example by an automatic transfer on payday.
2. Interest rate: the annual rate your savings account pays. For a high-yield savings account or money market account, use the current APY as a reasonable estimate.
3. Tenure: the number of months you plan to keep saving, from 6 months to 10 years.
4. Compounding: how often the bank adds interest to the balance. Most US banks and credit unions compound daily and credit interest monthly, so monthly is the closest choice. Pick quarterly or yearly if your account terms say so.

The result shows the balance at the end, the total you deposited and the interest earned.

How the calculation works

The calculator assumes each deposit goes in at the start of the month and then earns interest until the end of the plan at the rate you entered. It adds up what every deposit has grown to:

• The first deposit earns interest for the full period.
• The second earns interest for one month less.
• The last deposit earns interest for one month.

With the defaults, $500 a month at 4% for 60 months, compounded monthly:

• Total deposited: $30,000
• Interest earned: about $3,260
• Balance at the end: about $33,260

That is less than 4% a year on $30,000 for five years, because on average your money is in the account for only about half the period. The calculation reflects that, which is why the result is lower than a quick “rate times total” guess.

How the result changes

Monthly deposit	Rate	Months	Deposited	Interest	Balance
$500	4%	12	$6,000	$132	$6,132
$500	4%	36	$18,000	$1,154	$19,154
$500	4%	60	$30,000	$3,260	$33,260
$500	2%	60	$30,000	$1,576	$31,576
$500	5%	60	$30,000	$4,145	$34,145
$300	4%	120	$36,000	$8,322	$44,322

Two things stand out. First, interest grows faster than the deposits as time goes on, because later months earn interest on a larger balance. Second, the rate matters a lot over a few years: moving from a 2% account to a 5% account on the same deposits more than doubles the interest. Many large banks still pay well under 1% on standard savings, so it is worth checking where your savings sit.

Compounding frequency matters much less. The same $500 a month at 4% for 60 months gives about $33,260 with monthly compounding and about $33,198 with yearly compounding, a difference of about $62.

Planning for a goal

The calculator works well for saving toward something specific:

• An emergency fund, commonly three to six months of essential expenses.
• A down payment on a home or a car.
• A wedding, a move or a big trip.
• A tax bill, if you are self-employed and pay estimated taxes quarterly.

To find the monthly deposit for a goal, start with the target divided by the number of months, then adjust down slightly for the interest. For $30,000 in three years at 4.5%, $833 a month ($30,000 ÷ 36) would end at about $32,162, more than you need. About $780 a month reaches $30,116, because interest covers roughly $2,000 of the goal. Try a few amounts until the balance matches your goal.

Savings account, CD or investing?

Each fits a different job:

• A savings account suits money you add to every month and might need at short notice. The rate can change at any time, so treat the result as an estimate.
• A CD locks in a rate for a set term but usually takes a single deposit. If you already have a lump sum, the CD calculator shows what it earns. Some people combine the two, saving monthly and moving the balance into a CD every year.
• Investing in stocks through a brokerage account or retirement plan can earn more over long periods but can also fall in value. It suits money you will not need for at least five to ten years. The monthly investment calculator shows projections for monthly contributions at different return rates.

A useful rule of thumb: money you need within about five years belongs in savings or CDs. Money for twenty years from now, such as retirement, can go into investments. For that, see the retirement savings calculator.

Using it with irregular income

If your income varies, as it does for freelancers, commission earners and seasonal workers, a fixed monthly deposit can be hard to keep up. One approach is to set the monthly deposit at what you can manage in your leanest month and run the calculator on that. In good months, add a lump sum on top. Each lump sum earns interest for the months left in the plan, so a $2,000 extra deposit with two years to go at 4% adds about $166 of interest by the end. Track the real balance against the calculator’s figure every few months and adjust the deposit if you are falling behind.

Another option is to save a percentage instead of a fixed amount, such as 10% of every payment you receive. Average your expected monthly income, take 10% of it and enter that figure to see roughly where the plan leads.

Rate changes

Savings account rates follow the Federal Reserve’s policy rate. When the Fed cuts rates, banks lower savings rates within weeks, and the opposite happens when it raises them. Over five years, the rate you get today may not hold. To plan conservatively, run the calculator at the current rate and at a rate one or two points lower. If the lower result still reaches your goal, the plan is safe.

Taxes and insurance

Interest from a savings account is taxed as ordinary income in the year it is paid, and the bank sends Form 1099-INT if you earn $10 or more in a year. The calculator shows interest before tax. Deposits at FDIC-insured banks and NCUA-insured credit unions are covered up to $250,000 per depositor, per institution, per ownership category.

Making the plan stick

The most reliable way to save every month is to automate it:

• Set up a recurring transfer on the day after payday, so the money moves before you can spend it.
• Use a separate account, ideally at a different bank, so the savings are not visible next to your checking balance.
• Raise the deposit when you get a raise, even by a small amount.
• Name the account after the goal. It sounds trivial, but many people find it makes withdrawals less tempting.

If you have high-interest debt, such as a credit card at 20% or more, paying it down usually beats saving at 4%. Keep a small emergency buffer and put the rest toward the debt first.

Check the plan once or twice a year. If the account rate has dropped, the deposit may need to rise a little to stay on track.

The calculator runs in your browser. Nothing you type is saved or sent.

Learn more

How a savings plan grows shows the deposit-by-deposit math. If you are weighing a guaranteed savings account against investing the same amount each month, savings plan vs investing compares them for different goals.

Frequently asked questions

How much will I have if I save $500 a month for 5 years?

At 4% compounded monthly, about $33,260: $30,000 of deposits and about $3,260 of interest. At 2% it is about $31,576 and at 5% about $34,145. The calculator shows the figure for your own rate and term.

Why is my interest lower than the rate times my total savings?

Because each deposit earns interest only from the month it goes in. The first deposit earns for the whole period, the last for one month. On average your money is in the account for about half the time, so the interest is roughly half of what the full total would earn over the whole period.

Does it matter whether I deposit at the start or end of the month?

Slightly. The calculator assumes the start of the month, so each deposit earns one more month of interest than an end-of-month deposit would. On $500 a month at 4% for five years, the difference is around $110. Depositing right after payday gets you closest to the result shown.

What is a good interest rate for a savings account?

It changes with the Federal Reserve’s rates. A good benchmark is what online banks and credit unions are paying on high-yield savings at the time, which is usually several times the rate at large traditional banks. Compare APYs, and check for minimum balances or monthly fees that would reduce the return.

Can I use this for a Christmas club or holiday savings account?

Yes. Enter the monthly deposit, the rate the account pays and the number of months until the payout, usually November. Many of these accounts pay little or no interest, so the result will be close to the total deposited. A high-yield savings account with automatic transfers often earns more.

Is the interest on a savings account taxable?

Yes. It is taxed as ordinary income, at federal and usually state level, in the year it is credited. Your bank reports it on Form 1099-INT if it is $10 or more. Savings inside a tax-advantaged account, such as an IRA or HSA held in cash, follow that account’s tax rules instead.