Savings Calculator
Estimate how your savings will grow over time with contributions, compounding interest, inflation, and taxes.
Initial Investment
Regular Contributions
Investment Parameters
Enter your savings information to see your growth projection
1. Periodic Interest Rate
r_period = (annual_rate × (1 - tax_rate)) / compounding_frequency
2. Annual Contributions (with growth)
Annual_k = Annual_base × (1 + annual_increase_rate)^(k-1)
3. Monthly Contributions (with growth)
Monthly_k = Monthly_base × (1 + monthly_increase_rate)^(k-1)
4. Final Balance
Balance = Initial × (1 + r_period)^(periods) + Accumulated_Contributions
5. Real Value (Inflation-Adjusted)
Real_Value = Final_Balance / (1 + inflation_rate)^years
How does compounding frequency affect my savings?
More frequent compounding (daily vs annually) means interest is calculated and added to your balance more often, leading to slightly higher returns due to earning interest on previously earned interest.
Should I include inflation in my calculations?
Yes, inflation reduces the purchasing power of money over time. The "real value" shows what your future savings will be worth in today's dollars, helping you plan more accurately.
How are taxes applied to my savings?
The calculator applies taxes only to interest earned, not to your principal contributions. This simulates a taxable savings account where contributions are made with after-tax dollars.
What's the difference between annual and monthly contributions?
Annual contributions are added once per year at the beginning, while monthly contributions are added each month. Both can have separate growth rates to account for salary increases or changing financial situations.