Savings Calculator
See how your money grows with compound interest. Calculate savings for HYSAs, CDs, or any regular deposits over time.
Your Savings Plan
Enter your savings details to see how your money grows
Your Savings Growth
See how your savings will grow over time
You'll earn $7,703 in interest, which is 30.8% on top of your contributions.
Monthly Savings Examples
| Monthly Savings | 5 Years | 10 Years | 20 Years | Calculator |
|---|---|---|---|---|
| $100/month | ~$6,780 | ~$15,480 | ~$39,600 | Calculate → |
| $200/month | ~$13,560 | ~$30,960 | ~$79,200 | Calculate → |
| $300/month | ~$20,340 | ~$46,440 | ~$118,800 | Calculate → |
| $500/month | ~$33,900 | ~$77,400 | ~$198,000 | Calculate → |
| $1000/month | ~$67,800 | ~$154,800 | ~$396,000 | Calculate → |
*Estimates based on 5% annual interest rate, compounded monthly. Actual results vary.
Understanding Compound Interest
Compound interest is often called the eighth wonder of the world. Unlike simple interest which only calculates on your original deposit, compound interest earns interest on your interest, creating exponential growth over time.
The Power of Starting Early
Time is the most important factor in compound growth. Someone who saves $200/month from age 25 to 35 (10 years, $24,000 total) and then stops, will often have more at 65 than someone who starts at 35 and saves until 65 (30 years, $72,000 total), thanks to the extra years of compounding.
Compound Frequency Matters
Interest can compound daily, monthly, quarterly, or annually. More frequent compounding means slightly higher returns. A 5% rate compounded daily gives an effective annual rate (APY) of about 5.13%, while annual compounding stays at exactly 5%.
High-Yield Savings Accounts
Traditional bank savings accounts often pay near 0% interest. High-yield savings accounts (HYSAs) from online banks can offer 4-5% APY in 2025. This difference is significant: $10,000 at 0.1% earns $10/year, while at 5% it earns $500/year.
Frequently Asked Questions
How does compound interest work?▼
Compound interest means you earn interest on both your original deposit and on previously earned interest. For example, if you deposit $1,000 at 5% annual interest, after year one you have $1,050. In year two, you earn 5% on $1,050 (not just $1,000), giving you $1,102.50. This compounding effect accelerates your savings growth over time.
How much should I save each month?▼
A common guideline is to save at least 20% of your income, following the 50/30/20 rule (50% needs, 30% wants, 20% savings). However, any amount is better than nothing. Start with what you can afford and increase gradually. Even $50-$100 per month can grow significantly over 10-20 years with compound interest.
What is a good savings account interest rate?▼
As of 2025, high-yield savings accounts (HYSAs) offer 4-5% APY, significantly higher than traditional bank accounts (0.01-0.5%). Online banks typically offer the best rates. CDs (Certificates of Deposit) may offer higher rates for locking money for a fixed term. Always compare current rates as they change with Federal Reserve policy.
Is it better to save monthly or as a lump sum?▼
If you have a lump sum available, investing it immediately typically performs better due to more time for compound interest. However, regular monthly savings (dollar-cost averaging) is more practical for most people and builds good habits. Our calculator shows results for both initial deposits and monthly contributions.
How much will $200 a month grow to in 10 years?▼
Saving $200 per month for 10 years at 5% interest would give you approximately $31,000. Your total contributions would be $24,000, meaning you earn about $7,000 in compound interest. Use our calculator above to see exact figures for your situation.