Savings Calculator

Consistent investments over a number of years can be an effective strategy to accumulate wealth. Even small additions to your savings add up over time. This calculator demonstrates how to put this savings strategy to work for you!

Savings Calculator

Your savings is worth TOTAL_AT_END_OF_INVESTMENT after YEARS years.

If you save ADDITIONAL_CONTRIBUTIONS DEPOSIT_FREQUENCY your savings may grow to TOTAL_AT_END_OF_INVESTMENT after YEARS years. This includes a starting balance of STARTING_AMOUNT and a RATE_OF_RETURN annual rate of return.

Results Summary
Starting amount	STARTING_AMOUNT
Years	YEARS
Additional contributions	ADDITIONAL_CONTRIBUTIONS DEPOSIT_FREQUENCY
Rate of return	RATE_OF_RETURN COMPOUND_INTEREST
Total amount you will have contributed	TOTAL_AMOUNT_YOU_HAVE_PAID_IN
Total at end of investment	TOTAL_AT_END_OF_INVESTMENT

Savings Balance by Year

**REPEATING GROUP**

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Definitions

Starting amount

The starting balance or current amount you have invested or saved.

Additional contributions

The amount that you plan on adding to your savings or investment each period. The investment period options include monthly, quarterly and annually. This calculator assumes that you make your contributions at the beginning of each period.

Years

The total number of years you are planning to save or invest.

Rate of return

The annual rate of return for this investment or savings account. The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2005, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year. During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less.

It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect additional sales charges and fees that funds may charge.

Compounding

Earnings on an investment's earnings, plus previous interest. This calculator allows you to choose the frequency that your investment's interest or income is added to your account. The more frequently this occurs, the sooner your accumulated earnings will generate additional earnings. For stock and mutual fund investments, you should choose 'Annual'. For savings accounts and CDs, all of the options are valid, although you will need to check with your financial institution to find out how often interest is being compounded on your particular investment.