About Savings Calculator
This calculator estimates the future value of your savings account by applying compound interest to your initial deposit and adding the effect of making regular annual contributions.
How to Use:
- Initial Deposit: The starting amount in your savings account (e.g., $1,000)
- Annual Addition: The fixed amount you plan to add each year (e.g., $500)
- Annual Interest Rate: The yearly interest rate your savings earn (e.g., 5%)
- Number of Years: The time period for your savings projection (e.g., 10 years)
Example: Starting with $1,000, adding $500 yearly, at a 5% annual interest rate for 10 years:
Future Value ≈ $1,000 * (1.05)^10 + $500 * [((1.05)^10 - 1) / 0.05] ≈ $1,629 + $6,289 = $7,918.
Note: This is an estimate. Actual savings growth may vary based on fluctuating interest rates, compounding frequency, fees, or taxes.