See how compound interest can grow your money. This tool projects your total savings growth, factoring in your initial deposit and regular contributions to show you the true potential of long-term saving.
See how much your savings can grow over time.
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A **Future Value of Savings Calculator** is a financial planning tool that projects the total wealth you can accumulate by a future date. It's not just a simple savings calculator; it demonstrates the power of **compound interest**. By inputting your starting amount, regular contributions, and an expected rate of return, you can see a realistic **investment projection** of your money's potential growth over time. This helps you visualize how disciplined saving and investing can build significant wealth.
This calculator combines two separate formulas to find your total future value. It calculates the growth of your initial "lump sum" investment and the growth of your "annuity" (your regular monthly contributions) and then adds them together.
Total FV = [FV of Initial Deposit] + [FV of Monthly Contributions]
This shows the combined power of your starting capital and your ongoing savings.
FV of Initial Deposit = PV × (1 + r)n
FV of Contributions = PMT × [ ((1 + r)n - 1) / r ]
Let's use the calculator's default values to see a 20-year **investment projection**:
Calculation Steps:
1. FV of Initial Deposit = $10,000 × (1 + 0.00667)240 ≈ $49,268
2. FV of Contributions = $500 × [ ((1 + 0.00667)240 - 1) / 0.00667 ] ≈ $294,510
3. Total Future Value = $49,268 + $294,510 = $343,778
Total Principal Invested: $10,000 + ($500 × 240) = $130,000
Total Interest Earned: $343,778 - $130,000 = $213,778
As you can see, the **total interest earned** is significantly more than the principal you invested, highlighting the incredible benefit of long-term compounding.
Understanding your **savings growth** is fundamental to achieving financial security. This calculator is perfect for:
When making projections, it's helpful to use realistic numbers. Here are some common benchmarks used in financial planning:
Your Total Principal is the money you personally put in (your initial deposit plus all your monthly contributions). The Future Value is that total principal *plus* all the **total interest earned** through compounding.
No. This is an **investment projection** tool. While interest from a bank account is guaranteed, returns from stock or bond investments are not. The "Expected Annual Return" is an estimate, and your actual results could be higher or lower.
Your initial investment is very powerful because it has the most time to grow. As seen in the example, that first $10,000 grew by almost 5x on its own because it was compounding for the full 20 years.
Understanding your future investment potential is the first step toward achieving your goals. To plan for specific targets, try our Goal-Based Savings Calculator or see how a single investment grows with the Lump Sum Calculator.