Savings Calculator

Savings Calculator

Project how a savings account grows from an initial deposit, monthly deposits and its APY — or find the monthly amount that reaches a goal — and compare CDs.

$22,628.02

after 5 years at 4% APY

You deposit

$20,000.00

$5,000.00 + $250.00 × 60

Interest earned

$2,628.02

13.1% on top of deposits

Interest in year 1

$254.61

$21.22 a month on average

Working

Monthly rate from the APY: i = (1 + 0.04)^(1/12) − 1 = 0.00327374 (0.327374% a month).
Initial deposit: $5,000.00 × (1 + i)^60 = $5,000.00 × 1.2166529 = $6,083.26. (Same as $5,000.00 × (1 + 0.04)^5.)
Monthly deposits: $250.00 × ((1 + i)^60 − 1) ÷ i = $250.00 × 66.179024 = $16,544.76.
Balance: $6,083.26 + $16,544.76 = $22,628.02.
You deposit $5,000.00 + $250.00 × 60 = $20,000.00; interest earned = $22,628.02 − $20,000.00 = $2,628.02.

Year by year

Savings balance year by year
Year	Deposited	Interest that year	Total interest	Balance
1	$8,000	$254.61	$254.61	$8,254.61
2	$11,000	$384.79	$639.41	$11,639.41
3	$14,000	$520.19	$1,159.59	$15,159.59
4	$17,000	$660.99	$1,820.59	$18,820.59
5	$20,000	$807.43	$2,628.02	$22,628.02

Convert APR to APY

3.977% APY from 3.9% APR compounded daily

APY = (1 + 0.039 ÷ 365)^365 − 1 = 3.97683%

Compare CDs

The APYs below are examples, not offers — enter the ones you are comparing. “vs savings” uses the APY above for the same term.

CD interest at maturity on $10,000.00
Term	APY	Interest	At maturity	vs savings at 4%
6 mo	4.25%	$210.29	$10,210.29	+$12.25
12 mo	4.1%	$410.00	$10,410.00	+$10.00
24 mo	3.9%	$795.21	$10,795.21	−$20.79

How to use the savings calculator

Choose what you want to know. In How much I’ll have, enter what you are starting with, what you will add each month, the account’s APY and how many years you will save; the balance, your deposits and the interest earned appear with the working and a year-by-year table. In What to save monthly, enter a goal instead of a monthly deposit and the calculator works out the deposit that gets you there on time, with the target month.

Below the result, the APR → APY converter turns a quoted interest rate into an APY you can compare, and the CD comparison shows what up to three certificates of deposit pay at maturity against leaving the money in savings. Everything is kept in the page address, so you can share a scenario. Rates change often and this page shows no live rates: check current offers from FDIC-insured banks (or NCUA-insured credit unions), and see the FDIC’s monthly national average rates for context.

The formulas

monthly rate       i = (1 + APY)^(1/12) − 1
balance after m months = P × (1 + i)^m + D × ((1 + i)^m − 1) ÷ i       (deposits at each month end)
monthly deposit for a goal = (goal − P × (1 + i)^m) × i ÷ ((1 + i)^m − 1)
APY from APR       = (1 + APR ÷ n)^n − 1        (n compounding periods a year; continuous: e^APR − 1)
CD at maturity     = deposit × (1 + APY)^(months ÷ 12)

Because APY already includes compounding, the calculator converts it to the equivalent monthly rate. Your initial deposit P then grows by exactly (1 + APY) each year, as the APY definition in the Truth in Savings Act’s Regulation DD intends, and each monthly deposit D earns interest from the month it arrives. Real accounts credit interest on their own schedule (often monthly, compounding daily), so bank statements can differ by a few cents.

Worked example

Start with $5,000, add $250 a month and earn 4% APY for 5 years. The monthly rate is 1.04^(1/12) − 1 ≈ 0.327%. The initial deposit grows to $5,000 × 1.04^5 = $6,083.26, and the 60 deposits grow to $250 × 66.179024 = $16,544.76, for a balance of $22,628.02. You put in $20,000, so the interest earned is $2,628.02.

Switch to What to save monthly with a $25,000 goal and the same $5,000, 4% and 5 years: the $5,000 grows to $6,083.26 on its own, so the deposits must supply the other $18,916.74 — $285.84 a month.

In the CD comparison, $10,000 in a 12-month CD at 4.1% APY earns $410.00, and a 24-month CD at 3.9% earns $795.21 (10,000 × 1.039² − 10,000).

Savings accounts vs CDs

Rate: a savings or money market account has a variable rate the bank can change at any time; a CD’s rate is fixed until maturity.
Access: savings are available when you need them. Taking money out of a CD early usually costs an early withdrawal penalty, often several months of interest, set by the bank.
Laddering: splitting money across CDs that mature at different times keeps part of it available while locking in rates on the rest.
Brokered CDs bought through a brokerage work differently: they may be sold on a secondary market at a gain or loss instead of redeemed early. Investor.gov explains how they work.

Things to keep in mind

Interest is taxable. Interest from savings and CDs is generally taxable income each year, even if you leave it in the account.
Inflation. If your APY is below inflation, your balance grows but buys less. The inflation calculator shows what past inflation did to a dollar.
Promotional rates end. Some accounts pay a high introductory APY for a few months, then drop; run the projection with the ongoing rate too.
Stay within insurance limits. Deposits are insured up to $250,000 per depositor, per insured bank, per ownership category.

For investments with a stated interest rate and a compounding schedule, the compound interest calculator works from the rate instead of the APY; for long-term goals, see the retirement calculator. These projections assume the rate you enter stays constant.

Frequently asked questions

What is the difference between APR and APY?

APR is the stated yearly rate before compounding; APY (annual percentage yield) includes the effect of compounding over a year, so it is what $100 actually earns in 12 months. A 3.9% rate compounded daily is a 3.977% APY; compounded monthly it is 3.970%. Federal Truth in Savings rules require banks to quote the APY on deposit accounts, which is why it is the number to compare.

How much interest will $10,000 earn in a year?

Multiply by the APY: at 4% APY, $10,000 earns $400 in a year if the rate stays the same and you leave the interest in the account. At a 0.5% APY it earns $50. Savings account rates are variable and can change at any time, so a long projection is only as good as the rate assumption.

Is a CD better than a high-yield savings account?

A CD locks in its rate for the term, while a savings rate can fall (or rise) at any time. In exchange you usually pay a penalty to withdraw early. In this page’s example, a 24-month CD at 3.9% earns $795.21 on $10,000 — $20.79 less than savings would if its 4% APY held for two years, but it is guaranteed. If you expect rates to drop, the lock-in can be worth it; for an emergency fund, instant access usually matters more.

Is my money in a savings account or CD insured?

At an FDIC-insured bank, deposits — including savings accounts, money market deposit accounts and CDs — are insured up to $250,000 per depositor, per insured bank, for each account ownership category. Credit union deposits have similar coverage through the NCUA. Check the bank at FDIC.gov before you open an account.

Does daily or monthly compounding matter?

Only a little, and the APY already accounts for it. That is why this calculator asks for the APY: two accounts with the same APY pay the same over a year whatever their compounding schedule. If a bank only quotes a rate, convert it with the APR → APY converter on this page first.

Last reviewed 25 September 2026 · Built and checked by the Reeliy team · How we test our tools