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Savings Calculator with Regular Contributions

Calculate final savings balance with recurring monthly or annual deposits. Includes a detailed amortization schedule for wealth accumulation planning.

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About

Building wealth rarely happens overnight. It is the result of consistent habits and the mathematical power of compound interest. This tool models the growth of a savings account where an initial lump sum is bolstered by regular contributions. The calculation is critical for long-term goals like retirement planning or a house down payment where small variances in contribution frequency or interest rates compound into significant differences over decades.

Investors and savers use this logic to determine the exact monthly commitment required to hit a specific financial target. By separating the principal investment from the interest earned the user gains a clear view of how much "free money" the bank provides over the term. The breakdown helps visualize the exponential curve of wealth accumulation.

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Formulas

The total future value FV is derived from two components. The growth of the initial principal P and the future value of a series of regular contributions PMT.

FV = P × 1 + rnnt + PMT × 1 + rnnt − 1rn

Where r is the annual interest rate in decimal form and n is the number of compounding periods per year.

Reference Data

FrequencyCompounding Periods nEffective Annual Rate (EAR)Best Use Case
Daily365HighestHigh-yield savings accounts
Monthly12StandardMortgages and standard savings
Quarterly4ModerateCorporate bonds or dividends
Semi-Annually2LowGovernment treasury bonds
Annually1LowestSimple certificates of deposit (CDs)

Frequently Asked Questions

Yes. Contributing at the start of a period allows that money to earn interest immediately. Contributing at the end delays the growth cycle by one period. This calculator assumes end-of-period contributions which is standard for conservative estimates.
The nominal rate is the stated annual percentage. The effective rate accounts for intra-year compounding. For example a 5% nominal rate compounded monthly results in an effective return slightly higher than 5% because the interest paid in month one earns its own interest in month two.
This tool calculates nominal growth. To understand purchasing power one must subtract the expected inflation rate from the interest rate. Real returns are often 2-3% lower than nominal returns.