Our savings interest rate calculator helps take the guesswork out of understanding how interest earned plus time can affect your savings efforts. And how modifying your contributions and other details can make a significant difference.

Use this calculator to quickly estimate future savings and see how time and compounding interest can work in your favor.

Savings Interest Rate Calculator

Use this savings interest rate calculator to estimate how your balance can grow over time based on your initial deposit, monthly contributions, and APY.

Enter Your Savings Details

Keep it simple, or open Advanced Options if you want to adjust compounding and contribution timing.

10 years (120 months)
APY includes compound interest. Your bank or credit union lists this on the account page.
Advanced Options
Estimates assume a fixed APY with consistent monthly contributions. Actual earnings can vary if rates change.

Results

Savings breakdown

Total savings breakdown:

Interest earned
—
Total contributions
—
Initial deposit
—
Your total savings

—

i
Tip: Compare different APYs to see how much an interest rate change can affect your ending balance.
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How a Savings Interest Rate Calculator Works

Your savings interest rate calculator estimates how much your savings could grow by factoring in details about your contributions and the rate you can earn in a high-yield or other savings account.

Here’s what it uses to calculate your results:

  • Initial deposit: The amount of money you start with.
  • Monthly contributions: Any additional money you add regularly.
  • Annual percentage yield (APY): The rate you earn, including compounding interest.
  • Length of time: How long your money stays in the account.
  • Compounding interest: How often interest is calculated and added to your balance.

One important distinction is the difference between an annual interest rate and an APY. The annual interest rate shows the base rate, while APY reflects how often interest compounds, making it a more accurate measure of what you’ll actually earn. Even a small increase in APY can noticeably increase your earnings and balance over time.

Pro Tip

From our on-staff Certified Financial Educator:

Depending on your tolerance for shopping around for the best APY at various financial institutions, you may or may not be stuck with the rates that your current bank, credit union, or institution offers for savings-type accounts. 

However, even if you don’t wish to shop for rates, use the savings interest rate calculator to adjust the length of time and your monthly contributions to see how even small changes can have a significant impact on your total savings.

What Is APY (Annual Percentage Yield)?

Your APY, or annual percentage yield, refers to the total amount of earnings on your savings account over the course of a year, which includes the effects of compounding interest.

Unlike the simple interest rate number, which shows only the base rate at which you can earn, APY accounts for the frequency at which the interest earnings add to your balance. That makes APY a more accurate reflection of what you’ll actually earn over time.

In other words, the interest rate plus the compounding frequency is used to calculate your APY.

Banks and credit unions typically advertise APYs because they give a clearer picture of potential earnings. High-yield savings accounts often stand out by offering higher APYs than traditional savings accounts, though they may come with minimum balance requirements or other conditions.

You may also see APY used when comparing money market accounts or certificates of deposit (CDs). While these accounts can earn interest differently, APY provides a consistent way to compare options across account types.

Factors That Affect How Much Your Savings Account Can Earn

Several factors determine how much money your savings investment can earn over time.

  • Initial deposit: The amount of money you start with. This amount allows interest earnings to grow from day one.
  • Amount of money added monthly: Regular contributions can significantly increase total savings.
  • Length of time you keep the money in the account: Time is one of the most significant factors in earning interest.
  • Compounding interest: Allows interest to earn interest in intervals over time.
  • Minimum balance requirements: Some accounts require a minimum monthly balance and pay interest only if your investment balance stays above a set minimum.

Savings Accounts vs Other Interest-Earning Options

Not all interest-earning accounts are the same. Here are some other common strategies:

1. Savings Accounts

Traditional savings accounts are relatively easy to set up and typically have low minimum balance requirements. They work well for short-term goals and emergency funds.

2. High-Yield Savings Accounts

High-yield savings accounts offer higher APYs than standard savings accounts and are generally readily available through online and brick-and-mortar banks. They’re a popular choice for earning interest while keeping funds accessible.

3. Money Market Accounts

Money market accounts often offer competitive interest rates and can feature limited check-writing or debit access. They usually require higher balances, but can still work for emergency or long-term savings.

4. Certificates of Deposit (CDs)

CDs usually offer higher interest rates in exchange for locking your money away for a fixed period. They can be excellent for leveraging money you won’t need right away.

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If you’re planning beyond savings or looking for ways to maximize your budgeting strategy, these free tools can help you run the numbers:

Frequently Asked Questions

How accurate is a savings interest rate calculator?

A savings calculator provides estimates based on the information you enter. Actual results may vary if interest rates change or contributions aren’t consistent. It’s not uncommon for your bank or credit union to adjust its rates while you have money invested in your savings.

Is APY better than looking at the interest rate alone?

Yes. APY includes compounding interest, making it a more accurate way to compare savings accounts and other interest-earning options.

Can I use this calculator for CDs or money market accounts?

While you can estimate CD investment growth using a savings calculator, CDs and money market accounts may have different rules, such as fixed terms or balance requirements.

Conclusion

Your savings interest rate calculator provides a simple way to visualize how your money could grow over time. While calculators can’t predict future rate changes that can affect your account, they’re still excellent planning and estimating tools. By using this calculator, you can easily see how making consistent contributions, patience, and compounding interest work together to earn you money.