Simple Savings Calculator | Bankrate (2024)

Quick definitions to know

Initial amount

This is the starting amount of your investment, or how much you can initially contribute to the account. Whether you have $100 or $10,000 to contribute, your initial amount is crucial to your investment's growth.

Monthly deposit

The monthly deposit is the amount you can contribute to the growth of your investment each month. Decide on this amount according to your monthly budget. Tinker with the amount to see how higher monthly deposits can boost your investment growth over time.

Annual interest

Estimate the rate you'll earn on your investment by checking our rate tables. You can find the best rates on CDs, checking, savings and money market accounts. If you already know what you'll be earning, enter the interest rate. Make sure to specify whether interest will be compounded monthly, quarterly, semiannually or annually.

Number of years

This is the number of years your investment has to grow. For example, if you're 30 years old, and you plan to retire at age 65, your IRA has 35 years to grow. If you're purchasing a 5-year CD, your investment has 5 years to grow. Longer time frames equate to larger investment growth.

• Traditional savings: A savings account that’s at lower rates than other interest-bearing financial products. Savings accounts generally have variable APYs.
• High-yield savings: A high yield savings account usually has a yield that’s at least a few times higher than the national average APY. Savings accounts generally have variable APYs.
• CDs: Certificates of deposit (CDs) generally have fixed APYs and they generally have set terms. During those terms they generally have early withdrawal penalties for removing money before the term ends.
• Money market account: A money market account is a type of savings deposit account that might have check-writing privileges. Money market accounts generally have variable APYs.

One strategy is to use the 50/30/20 rule. This rule says to use 50 percent of your income for your needs (housing, for example), 30 percent for your wants and you should save 20 percent of your income. Learning how much you should save in a month will help you build up your savings over time.

The average yield in the U.S. is 0.61 percent annual percentage yield (APY). Enter an APY to see how much you can save, or choose an APY from one of our partners.

Calculating how much you’re saving can help motivate you to save more. It can also help you determine how much you’ll have saved over time.