Savings calculator


Ever wondered how much you could save over time if you put away just a little each month? A savings calculator could be your magic lantern. Unlike Genie, it won't grant you three wishes but it sure will illustrate the incredible power of compound interest on your hard-earned money.

What is a Savings Calculator?

A savings calculator is like a smart financial assistant. It takes into account parameters like initial deposit, monthly savings amount, interest rate, and the duration of your savings plan. In return, it gives you a clear estimation of your total savings and compound interest over the given period.

Why Use a Savings Calculator?

Why do we plan a road trip using a GPS? To reach our desired destination in the most efficient way. Similarly, a savings calculator helps outline your financial journey, from 'Start' to 'Goal.' It helps you ascertain how much you need to save monthly to reach your financial goal within a specific time frame.

Think of it as your personal finance coach encouraging you to score that retirement goal or afford your dream house. Isn't it wonderful how numbers can paint a path towards your dreams?

How to Use a Savings Calculator?

Using a savings calculator seriously couldn't be easier. Add in your current savings figure, the amount you plan to save each month, your expected annual interest rate, and the number of years you plan to save. Click 'calculate' and voila! You have an estimate of your savings at the end of the term.

Imagine it like baking a cake.

Your current savings is the flour — the base of the cake.

The monthly savings are the eggs and butter, which you need to add consistently for the cake to set.

The Interest rate is the baking powder, which helps the cake to rise over time.

And the number of years you plan to save? That's the oven's temperature and baking time. Turn up the heat or let it bake longer and your cake (read savings) will grow bigger.

Unlocking the Secrets of Compound Interest

Understanding compound interest - the secret sauce that makes your savings grow - is crucial. As author and finance whiz Maria Nemeth, Ph.D. puts it, "Money is energy. It moves and flows. It grows not simply from being saved, but from being used."

And this is exactly what compound interest does. It puts your money to work. Your savings grow, not linearly, but exponentially. It's a fascinating mathematical wonder where your savings earn money, and that earned money earns more money! Now, isn't that a savings chariot you'd want to hop on?

Don't Just Dream, Act!

Having dreams is great; having a plan to achieve them is even better. A savings calculator opens a window to a secure financial future. It allows you to plan, pivot, and persevere in your savings journey and helps you be prepared for life's planned and unplanned events.

Remember, the journey to a thousand miles (or in this case, dollars) begins with a single step. Why not make that first step using a savings calculator today?