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Savings calculator: How much interest will you get?

See how you can calculate interest on a savings account.

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If you’re saving for a specific goal, like a down payment for a house or the price of a round-the-world vacation, calculate how much you need to set aside each month to reach your goal. By entering a few details into a savings calculator, you can easily figure out how much you can save for up to 40 years.

How do I use the savings calculator?

Calculate your earnings power in six steps:

  1. Enter your initial deposit amount. This is the one-time deposit you’ll make into the account when you open it. Enter 0 if you’re starting from scratch.
  2. Enter your ongoing deposit amount. Type the amount you will regularly deposit into your account.
  3. Choose your payment frequency. Making regular payments into your account is an excellent way to boost your savings balance. You can choose from weekly, biweekly or monthly payments.
  4. Enter the interest rate. Enter the amount of interest you suspect to earn in your account.
  5. Select your length of time. How long will you be putting away money in your savings account? You can choose terms from 1 to 40 years. Calculate your savings using different lengths of time to see how your daily interest builds over time.
  6. Click calculate. The savings calculator crunches the numbers and tells you the total amount you’ll save, your total deposits and interest.

Calculate with current savings rates

Use the table to see how much interest you could earn based on today’s interest rates. Then, sort the table by APY, fees and more.

$
$
months
Name Product Interest rates (APY) Fee Minimum deposit to open Interest earned
American Express® High Yield Savings
0.60%
$0
$0
Enjoy no monthly fees and a competitive APY with this online-only savings account. Accounts offered by American Express National Bank, Member FDIC.
Axos Bank High Yield Savings
0.61%
$0
$250
No monthly maintenance fees. No minimum balance requirements. Interest compounded daily.
Aspiration Spend & Save Account

1.00% on $0 to $10,000 but you’ll need to be enrolled in Aspiration Plus and make at least $1,000 in debit card purchases a month
$0 per month or $7 per month for Aspiration Plus ($5.75 per month if you pay annually)
$10
Deposits are fossil fuel-free and insured by the FDIC. Enjoy a spend and save combo account with unlimited cash back rewards and a $100 bonus when you spend $1,000 in your first 60 days.
CIT Bank Money Market
0.60%
$0
$100
A savings account with a higher-than-average rate and minimal fees.
SoFi Money
0.25%
$0
$0
SoFi Money® is a cash management account that charges no account fees to save, spend, and earn cash back rewards when you spend on brands you love.
Chase Savings
0.01%
$5 per month
(can be waived)
$0
A simple savings account with low, waivable monthly fees and a $150 signup bonus when you meet deposit and balance requirements.
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Compare up to 4 providers

How to calculate interest on your savings account

Calculating compound interest is complicated. You’ll save a lot of time by using an online calculator. But if you want to do it by hand, here’s the equation:

\[A = P(1 + {r\over n})^{nt}\]

Here’s a deeper look at what each of these variables mean:

  • P is your principal balance or initial deposit amount.
  • r is your account’s interest rate, written as a decimal. So if your APY is 1%, r is 0.01.
  • n is the number of times your account compounds each year. Enter 365 for daily, 12 for monthly, 4 for quarterly or 1 for annually.
  • t is the length of time you plan on keeping money in the account, expressed in years.
  • A is how much your savings account balance will be at the end of the time period.

Let’s say you make a $5,000 deposit in a savings account earning 2% APY, compounded daily. Here’s how you’d calculate your interest after five years using the order of operations:

  • A = $5,000 (1+0.02/365) ^ (365*5)
  • A = $5,000 (1+0.00005479452) ^ (365*5)
  • A = $5,000 (1.00005479452) ^ (365*5)
  • A = $5,000 (1.02020078103)
  • A = $5525.84

Your savings account balance would be $5525.84 in five years, which means you’ll have earned $525.84 in interest.

How do interest rates on savings accounts work?

Unlike many checking accounts, savings accounts earn interest without you having to do a thing.

Interest is calculated as a percentage of your total deposit balance, such as 2.5% or 3% APY (annual percentage yield). Most savings accounts feature a variable interest rate, which means your bank may raise or lower the rate in line with fluctuations in the economy.

Savings accounts also offer the increased earning power of compound interest. This is when you earn interest on your initial deposit amount as well as the interest you have already accumulated earning interest on your interest.

Your bank may calculate interest daily, monthly or quarterly and deposit it into your account monthly or quarterly. Compounding frequency plays into how much interest you earn overtime. If your bank doesn’t compound interest daily, use a compound interest calculator to figure out your earning potential.

Why do I need to find the best interest rate?

Generally, the higher the interest rate, the greater the earning power. Even a small difference in interest rates can have a substantial effect on your overall savings, so compare a range of savings accounts and shop around for the best possible rate.

Banks have their own way of calculating interest based on the savings account you choose, so use free interest calculators to get a realistic idea of how much you’ll earn across each type.

How much interest can you get on $1,000 in a savings account?

As an example, let’s consider the case of Mark, a 25-year-old customer service consultant from Ohio. Having spent money as fast as he earned it throughout his 20s, Mark is ready to start putting some money aside monthly to save for a down payment on a house. He has $1,000 to save and plans to deposit an extra $100 each week, so Mark decides to calculate the difference between two savings accounts — one that pays 2.5% and another that pays 3%.

Account AAccount B
Interest rate2.5% APY3% APY
Initial deposit$1,000$1,000
Ongoing weekly deposit$100$100
Amount saved after 1 year$6,289.57$6,307.69
Amount saved after 3 years$17,273.73$17,412.77
Amount saved after 5 years$28,820.91$29,204.34

As you can see, by choosing the account with a 0.5% higher interest rate, at the end of five years Mark will have saved an extra $383.43.

How much should I have in my savings?

There’s no right answer for how much you should have in your savings account. If you’re using it as an emergency fund, it’s recommended to save three to six months of basic expenses. If you’re using it to save for a house or a vacation, those numbers will look different.

Though interest rates help your savings grow, making regular deposits is the best way to reach your savings goals. Setting aside a portion of your regular paycheck — even if it’s only $20 some weeks — will help you reach your goals a whole lot quicker.

Setting up an automatic deposit from your paycheck each pay period is an easy way to save without thinking about it.

Roberta’s regular deposits

Roberta is 18 years old and doesn’t have a particular savings goal in mind, but she wants to start putting money aside for the future. Her grandmother gave her a $1,000 check for her 18th birthday, and Roberta decides to deposit the money into a savings account. However, she also vows to become a more disciplined saver and start putting money aside regularly.

Roberta doesn’t save any money from her weekly paycheck, but realizes that cutting back on online shopping could save her $50 a week. If she cuts other unnecessary expenses, like the gym membership she never uses, she can save $100 each week.

By depositing $100 a week Roberta can save $29,204.34 after five years — only $15,183.06 with $50 deposits weekly.

$0 weekly deposit$50 weekly deposit$100 weekly deposit
Interest rate3% APY3% APY3% APY
Initial deposit$1,000$1,000$1,000
Ongoing weekly deposit$0$50$100
Amount saved after 1 year$1,030.45$3,669.07$6,307.69
Amount saved after 3 years$1,094.15$9,253.46$17,412.77
Amount saved after 5 years$1,030.45$15,183.06$29,204.34

Bottom line

A savings calculator helps you project how much you need to save to reach your financial goals. Play around with the ongoing deposit amount and timeline to see how much you could earn overtime. Reach your savings goals even quicker with a high-yield savings account with little to no fees.

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