Use this monthly savings calculator to estimate how much your savings could grow when you make consistent monthly deposits and earn compound interest.
Monthly Savings Calculator
Calculate your savings growth with monthly deposits.
Related calculators
- High Yield Savings Account Calculator.
- High Yield Savings Account Calculator Monthly
- ETF Calculator
- Cd Calculator (Certificate of Deposit)
- Compound Interest Calculator
- Monthly Compound Interest Calculator
- APY Calculator
What Is Monthly Savings With Compound Interest?
Monthly savings with compound interest means setting aside money on a regular monthly basis while earning interest not only on your deposits, but also on the interest already credited to your balance. Over time, this creates growth that accelerates as your balance increases.
Unlike simple savings, compound interest allows each contribution to earn interest for the remainder of the savings period. The longer your money stays invested and the more frequently interest is applied, the larger the final balance may become.
This approach is commonly used for long-term goals such as emergency funds, future purchases, or general wealth building.
What Is a Monthly Savings Calculator?
A monthly savings calculator estimates how much your savings could grow when you make consistent monthly deposits and earn compound interest. Instead of guessing future balances, the calculator applies financial formulas to project growth based on your inputs.
This calculator considers:
- Your initial deposit
- Your monthly deposit amount
- The interest rate (APY)
- The length of time you save
- How often interest compounds
The results show your total contributions, interest earned, and projected future value.
How This Monthly Savings Calculator Works
This calculator simulates savings growth over time by applying interest at the selected compounding frequency while adding monthly deposits throughout the year. Interest may compound daily, weekly, monthly, quarterly, semi-annually, or annually depending on your selection.
Each month, your deposit is added to the balance. Interest is then calculated based on the current balance and applied at the chosen interval. Because deposits are added regularly, newer contributions earn interest for less time than earlier ones.
The growth chart visually displays how your balance increases year by year, helping you see the combined impact of time, interest rate changes, and deposit size.
Compound Interest Formula Used in This Calculator
To estimate savings growth, the calculator combines compound interest math with recurring monthly deposits.
The base compound interest formula applied to your starting balance is:
FV = P × (1 + r ÷ n)^(n × t)
Where:
- P is the initial deposit
- r is the annual interest rate (as a decimal)
- n is the number of compounding periods per year
- t is the number of years
Monthly deposits are added incrementally and compounded based on the same frequency. The calculator accounts for timing differences automatically, which is why results may differ from simple estimates.
Key Terms Used in the Calculator
Initial Deposit
This is the amount you begin saving with. It benefits from the full compounding period, making early deposits especially impactful.
Monthly Deposit
The monthly deposit is the amount added to your savings each month. Consistent contributions often have a greater effect on long-term growth than starting with a large balance.
Interest Rate (APY)
The APY reflects the annual return, including the effect of compounding. The calculator converts this rate to match the selected compounding frequency.
Time Horizon
The time horizon shows how long your savings remain invested. Longer periods allow compound interest to build momentum.
Compound Frequency
Compound frequency determines how often interest is applied. More frequent compounding generally results in slightly higher balances over time.
Why Compound Frequency Matters
Interest that compounds more often allows growth to build sooner. While the difference may seem small in the short term, it becomes more noticeable over longer periods. This calculator helps compare scenarios so you can see how compounding frequency affects savings outcomes.