Savings & goals

Savings goal & compound interest

Forecast how your capital grows when combining a lump sum with monthly savings.

FAQ

What does expected return mean?

It’s an assumed average yearly return. It’s not guaranteed and real markets can fluctuate a lot. Try a few scenarios (low/medium/high) to understand the range.

Does this include inflation, fees, or taxes?

No. The calculator uses your return input as a simplified assumption. If you want to account for fees, taxes, or inflation, try a lower expected return.

How is compound interest calculated here?

The model compounds monthly and assumes monthly deposits. That’s a common approximation for long-term forecasting.

How do I reach my savings goal faster?

Increase monthly savings, extend the time horizon, or reassess the return assumption. Often, small monthly increases make a big difference over many years.

What happens if the return is 0%?

Then growth is linear: final value equals starting capital plus your monthly deposits over time.

Plan your long-term savings

Our savings calculator helps you visualize how your savings grow over time with the compound interest effect. By entering starting capital, monthly savings and expected return, you get a clear forecast of your future capital. This is a powerful tool for planning retirement savings, emergency funds or saving for major purchases like a home or car.

Understand compound interest

Compound interest is one of the most important principles for long-term savings. When you earn returns on your savings capital, the returns also start generating more returns. Over time, this effect can make a significant difference. Our calculator clearly shows how much of your future capital comes from your own savings versus returns.

Compare different savings scenarios

With our savings calculator, you can easily test different scenarios to find a savings solution that fits your finances. Try adjusting monthly savings, test different return levels or change the time horizon to see how it affects your future capital. This helps you set realistic savings goals and understand what's required to achieve your financial dreams.

Saving toward a goal: how compound interest works

Saving sounds simple: set money aside and stay consistent. In reality, two levers determine how fast you reach your target:

  • How much you save each month
  • How long you save (time)

When you add investment return on top, you get compound growth.

What is compound interest?

Compound interest means you earn returns not only on your deposits, but also on previous returns. That’s why growth often looks slow in the beginning and accelerates later.

A helpful way to think about it:

  • Early years: most of the balance comes from your own contributions
  • Later years: a larger share of the growth can come from returns

That’s exactly what the chart in the calculator visualizes: contributions vs total value.

How to use the calculator

  1. Enter your starting capital (if any).
  2. Set your monthly savings amount.
  3. Choose an expected annual return.
  4. Select the number of years.

The result shows a projected value, and breaks it down into contributions and growth.

Three quick ways to reach your goal sooner

  • Save a bit more: Small monthly increases can add up dramatically over many years.
  • Give it time: Extra years often matter more than people expect.
  • Be realistic about return: Try low/medium/high scenarios to understand the range.

Common pitfalls

  • Comparing options without considering fees.
  • Ignoring inflation over long horizons.
  • Treating an expected return as a guarantee.

If you want a more conservative estimate, use a lower expected return and see if the plan still works.

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