The same annual rate compounded monthly grows slightly faster than compounded annually — and daily compounding, which many banks use, grows slightly faster still — because interest starts earning its own interest sooner. The difference is small for short timelines but adds up meaningfully over decades — check your account's actual compounding frequency rather than assuming annually.
A contribution made at the start of the month earns interest for that whole month; the same contribution at the end earns none yet. This is a small effect per period, but it is the reason automating contributions right after payday (rather than at the end of the month) very slightly outperforms.
Simple mode projects where your savings end up given a fixed contribution. Goal Planning flips the question: given a target amount, it solves for either the monthly contribution you need or the time it will take to get there. Advanced adds compounding frequency, contribution timing, and inflation controls for a more precise projection.
A savings goal set in nominal dollars gets easier to hit over time purely from inflation — the number looks bigger but buys the same or less. Turning on inflation adjustment shows the real, purchasing-power-equivalent value, which is the more meaningful figure for long-term goals like a down payment years out.
This models a single savings account with a fixed assumed rate — it does not account for taxes on interest earned, FDIC insurance limits, or rate changes over time (e.g. a promotional APY that resets). For market-linked growth with volatility and tax treatment, use the Investment Calculator instead.
Growth Projection: Visualize how your savings grow over time.
Compound Interest: See the compounding effect on recurring contributions.
Flexible Inputs: Adjust initial balance, monthly deposit, interest rate, and duration.
Breakdown: See total contributed versus total interest earned.
Goal Planning: Solve for the required monthly contribution or the time needed to reach a savings target.
Emergency Fund: set a target (for example 3-6 months expenses), estimate the timeline, and adjust initial balance and monthly contribution.
Vacation or Goal Saving: enter a target amount and date to estimate the monthly savings needed, and see the interest-rate impact on growth.
Major Purchase: plan for a down payment, car, or large expense, and compare contribution and timeline scenarios.
General Wealth Building: project long-term growth with compound interest, and export or copy results for financial planning.
Plan your investments
Plan for retirement
Certificate of deposit
Calculate loan payments and interest.
Calculate car loan payments, total interest, and amortization schedule.
Calculate break-even point and target profit for business planning.
Calculate markup and margin percentages for pricing strategy.
Estimate monthly mortgage payments.
Calculate your debt-to-income ratio for loan eligibility.
Calculate time and interest to pay off credit card debt.
Last updated