How to use the savings calculator
Start with money you've already set aside for this goal, not your whole bank balance. Then add the monthly transfer you can keep making, even in a tight month.
Enter the APY from the account disclosure. APY already includes compounding, so the calculator converts it to a monthly yield without compounding it again.
- Enter your current savings and your monthly deposit.
- Pick whether deposits land at the start or end of the month.
- Add an optional yearly extra (like a tax refund) and a yearly increase to the monthly deposit.
- Enter the APY, any monthly account fee you can't get waived, and the saving period in years and months.
- Add a savings goal to see progress, the date you reach it and the deposit you'd need.
- Read the balance, the interest earned and the yearly table.
Example: $1,000 saved toward $20,000 in five years
Say you've saved $1,000, add $250 at the end of each month, earn a steady 4% APY and pay no fees. After five years you'd have $17,761.41. That's 88.81% of a $20,000 goal, leaving $2,238.59 to go.
To hit $20,000 on time, the calculator says you'd need to start at $283.83 a month. At today's prices, assuming 2.5% inflation, the $17,761.41 balance would buy about what $15,698.50 buys now.
| Monthly deposit | Money you put in | Balance after 5 years | Goal progress |
|---|---|---|---|
| $200 | $13,000.00 | $14,452.46 | 72.26% |
| $250 | $16,000.00 | $17,761.41 | 88.81% |
| $300 | $19,000.00 | $21,070.36 | 105.35% |
| $350 | $22,000.00 | $24,379.31 | 121.90% |
How the calculator turns APY into monthly growth
APY is the yearly yield with compounding already built in. The CFPB's Truth in Savings rules use it so you can compare accounts on equal terms. The calculator takes the 12th root of (1 + APY) to get a monthly yield, so a 4% APY works out to about 0.33% a month.
Each month, the calculator adds your deposit at the timing you picked, credits interest, then subtracts any fee. If a bank only gives you an interest rate, ask for the APY before you compare.
Monthly yield = (1 + APY)^(1 / 12) - 1End-of-month deposit: balance = previous balance x (1 + monthly yield) - fee + depositStart-of-month deposit: balance = (previous balance + deposit) x (1 + monthly yield) - feeMonthly deposit in year y = starting deposit x (1 + yearly increase)^yInterest earned = ending balance - all money deposited (before fees)
High yield savings: how much does the APY matter?
A better APY helps, but over a few years your deposits matter more. In the example, going from 3% to 5% APY adds $925.21 over five years. Raising the monthly deposit from $250 to $300 adds $3,308.95.
Savings APYs can change at any time on a variable-rate account. Use the APY range setting to see a lower and higher rate next to your base case.
| APY | Money you put in | Interest earned | Balance |
|---|---|---|---|
| 0% | $16,000.00 | $0.00 | $16,000.00 |
| 3% | $16,000.00 | $1,304.51 | $17,304.51 |
| 4% | $16,000.00 | $1,761.41 | $17,761.41 |
| 5% | $16,000.00 | $2,229.72 | $18,229.72 |
Monthly fees, deposit timing and yearly increases
A monthly maintenance fee eats into interest fast on a small balance. In the example, a $10 fee takes $600 over five years and cuts net growth from $1,761.41 to $1,099.62. The CFPB notes these fees are often waived if you keep a minimum balance or set up direct deposit, so check the terms.
Moving each $250 deposit to the start of the month adds $54.16 over five years. Raising the deposit 2% a year lifts the balance to $18,409.85, and 5% a year lifts it to $19,430.89. That extra comes from your own money, not more interest.
| Monthly fee | Fees paid | Net growth after fees | Balance |
|---|---|---|---|
| $0 | $0.00 | $1,761.41 | $17,761.41 |
| $5 | $300.00 | $1,430.51 | $17,430.51 |
| $10 | $600.00 | $1,099.62 | $17,099.62 |
| $15 | $900.00 | $768.72 | $16,768.72 |
Setting a savings goal you can trust
Run one goal at a time. If your emergency fund and a vacation fund share one run, the progress looks better than either goal is.
For an emergency fund, the CFPB says the right amount depends on your situation. Think about essential monthly costs, how steady your income is and what repairs or deductibles you might face. Quick access matters as much as yield for that money.
When the estimate won't match your statement
This is a steady-rate plan. Banks may pay interest on daily balances, credit it on different dates, use rate tiers or change a variable APY. The calculator also leaves out withdrawals, sign-up bonuses, taxes on interest and deposit holds.
Check that your bank or credit union is federally insured if you're in the U.S. Interest is usually taxable, and IRS Topic 403 explains the federal rules. Compare the plan with your real statements every few months and update the inputs.
Sources
These public references back up the APY method, fee guidance, emergency fund advice, deposit insurance and tax notes on this page.