Savings Calculator – Balance, Goal Date & Monthly Deposit

Savings Calculator

$5,000 plus $300 a month at 3.5% APY grows to $25,551.07 in 5 years, of which $2,551.07 is interest, and reaches a $25,000 goal in 4 years 11 months. The calculator also works out how much to set aside each month to hit a goal by a set date.

By the Calculators With Steps team · Updated November 10, 2026 · How we check our math

Year	Total deposited	Interest earned	Balance
1	$8,600.00	$232.39	$8,832.39
2	$12,200.00	$598.92	$12,798.92
3	$15,800.00	$1,104.27	$16,904.27
4	$19,400.00	$1,753.31	$21,153.31
5	$23,000.00	$2,551.07	$25,551.07

Year

Total deposited

Interest earned

Balance

$8,600.00

$232.39

$8,832.39

$12,200.00

$598.92

$12,798.92

$15,800.00

$1,104.27

$16,904.27

$19,400.00

$1,753.31

$21,153.31

$23,000.00

$2,551.07

$25,551.07

How to use the savings calculator

Pick the question you want answered:

Future balance – enter your starting balance, monthly deposit, APY and number of years. Add an optional inflation rate to see the result in today’s dollars.
Time to goal – enter your goal instead of a time period. The calculator counts the months until your balance first reaches it and estimates the month you will get there.
Deposit needed – enter a goal and a deadline to find the monthly deposit that gets you there.

Each mode shows the total you deposit, the interest earned, a yearly chart and a table.

How the savings calculator works

Savings accounts quote an annual percentage yield (APY), which already includes compounding. The calculator turns the APY into the equivalent monthly rate:

i = (1 + APY)^(1/12) − 1

It then adds interest every month and puts your deposit in at the end of the month:

Balance = P(1 + i)^n + D × [(1 + i)^n − 1] ÷ i

P = starting balance
D = monthly deposit
n = number of months

Using the APY this way means a balance left alone for a year grows by exactly the APY, whether the bank compounds daily or monthly.

Worked example

You have $5,000 saved, add $300 a month and earn 3.5% APY for 5 years.

Item	Value
Monthly rate	(1.035)^(1/12) − 1 = 0.28709%
Starting balance after 60 months	$5,938.43
Deposits with interest	$19,612.64
Final balance	$25,551.07
Total deposited	$23,000.00
Interest earned	$2,551.07

If your goal were $25,000, you would get there after 59 deposits, or 4 years 11 months. A $50,000 goal at the same pace takes 10 years 1 month. To hit $25,000 in exactly 5 years, the deposit needed is $291.57 a month.

APY vs. interest rate on a savings account

Banks often list two numbers: the interest rate and the APY. The interest rate is the nominal yearly rate before compounding. The APY adds the effect of compounding and is calculated as APY = (1 + r/n)^n − 1, where n is the number of compounding periods a year. For example, a 3.44% interest rate compounded daily works out to a 3.50% APY. U.S. banks must disclose the APY under the Truth in Savings rules, so it is the number to compare between accounts and the one to enter here. If you only know the nominal rate, convert it with the formula above, or use the compound interest calculator, which takes a rate and a compounding frequency.

Why the account you choose matters

Interest rates on savings vary widely. The FDIC publishes a national average each month, and in October 2026 it was 0.38% for savings accounts. Online banks and credit unions often pay several times that. Compare the same deposits at two rates:

APY	Balance after 5 years	Interest earned
0.38%	$23,264.61	$264.61
3.5%	$25,551.07	$2,551.07

That is almost ten times the interest for doing nothing more than choosing a better account. Make sure the account is FDIC-insured (or NCUA-insured at a credit union) and check whether the rate is promotional.

Savings tips

Automate the deposit. A transfer scheduled for payday is more reliable than saving what is left at the end of the month.
Build an emergency fund first. A common target is three to six months of essential expenses, kept in an insured account you can reach quickly.
Separate goals. Many banks let you open sub-accounts, so a vacation fund and a down payment fund do not mix.
Keep inflation in mind. Savings protect your money, but over long periods inflation erodes what it buys. The inflation calculator shows by how much.
Invest long-term money. For goals more than five years away, compare the growth with the investment calculator. For a fixed-rate view of compounding, use the compound interest calculator.

Savings Calculator: frequently asked questions

How do I calculate interest on a savings account?

Convert the APY to a monthly rate with (1 + APY)^(1/12) − 1 and multiply by your balance. At 3.5% APY the monthly rate is about 0.287%, so $10,000 earns $28.71 in the first month and $350 over a full year with no deposits.

How long will it take to save $25,000?

Starting from $5,000 and adding $300 a month at 3.5% APY, you pass $25,000 after 59 deposits, or 4 years 11 months. Choose Time to goal above and enter your own numbers.

How much should I save each month to reach my goal?

Use the Deposit needed option. To turn $5,000 into $25,000 in 5 years at 3.5% APY you need to deposit $291.57 a month; interest supplies about $2,506 of the total.

Does the APY make a big difference?

Yes. The FDIC's national average savings rate was 0.38% in October 2026. At that rate the example earns $264.61 of interest in 5 years, compared with $2,551.07 at 3.5% APY.

What is the difference between APY and interest rate?

The interest rate is the nominal yearly rate before compounding. APY includes the effect of compounding, so it is the true yearly return. U.S. banks must quote APY on deposit accounts, which makes accounts easy to compare.

How does inflation affect my savings?

Inflation lowers what your balance can buy. With 3% inflation, the $25,551.07 example balance after 5 years is worth about $22,040.58 in today's dollars. Enter an inflation rate in the calculator to see this.

Is interest on a savings account taxable?

In the U.S., interest from savings accounts, money market accounts and CDs is generally taxable income in the year it is credited, and banks report it on Form 1099-INT. This calculator shows interest before tax.