Savings Calculator

You enter a starting balance, a monthly contribution, an APY, and a time period. The calculator compounds your balance at the selected frequency and adds your contribution each month. The chart stacks your contributions below the interest so you can see visually how much of your ending balance is your own money versus what the account provided for free. If you have set a savings goal, the tool also shows exactly how many months it takes to reach that number at your current pace.

APY stands for Annual Percentage Yield. It tells you the effective annual return after compounding is included. A savings account advertised at 4.5% APY will return exactly 4.5% on your balance over a year because the bank compounds interest (usually daily or monthly) and adds it to your account. When comparing savings accounts, always use the APY number. It is the apples-to-apples figure regardless of how often each bank compounds.

A widely used rule of thumb is to save at least 20% of your take-home income each month, as popularized by the 50/30/20 budget framework. But the right number depends entirely on your situation. The most important thing is to save something consistently, even if that starts at $50 a month. Use this calculator to set a specific goal, work backward from it, and find the monthly contribution that gets you there in a timeframe that fits your budget. Increasing your contribution by even $25 a month makes a significant difference over five years.

As of mid-2026, online high-yield savings accounts at institutions like Marcus by Goldman Sachs, Ally Bank, and Discover are offering APYs in the 3.5 to 4.5% range. These rates shift as the Federal Reserve adjusts its benchmark rate. The key is to move away from traditional big-bank savings accounts that often pay well under 1% APY. Online banks have lower overhead and pass that savings to depositors through better rates. FDIC insurance covers deposits up to $250,000 per depositor per institution, so these accounts carry the same safety as any traditional bank.

The compound interest calculator focuses on growth from a single lump sum, which is useful for modeling what a one-time investment will become. This savings calculator is built for ongoing contributors. It accounts for a regular monthly deposit, which is the reality for most people building wealth paycheck by paycheck. It also includes a goal-tracking feature so you can set a target, like $25,000 for a down payment, and see precisely how many months of saving it takes to get there.

No. This calculator shows gross interest before taxes. In the United States, savings account interest is taxed as ordinary income in the year it is credited to your account, regardless of whether you withdraw it. Depending on your tax bracket, your net return will be slightly lower than the APY shown. For a rough estimate, multiply your interest income by your marginal tax rate and subtract that from the interest earned figure. Holding savings inside a tax-advantaged account like a Roth IRA eliminates this issue entirely for qualifying withdrawals.