Use this free savings account interest calculator to see how much your savings will grow with monthly deposits and interest. Or enter a savings goal and find out how much you need to set aside each month to reach it.
Compare with another account
Enter the APY on your current savings account to see how much a higher-yield account could add.
Your savings will grow to
—
- Starting balance—
- Your deposits—
- Interest earned—
- Final balance—
How your savings grow
See the year-by-year table
| Year | Deposits that year | Interest that year | Balance |
|---|
Assumes deposits at the end of each month, a fixed APY, and no withdrawals or fees. Interest on savings is generally taxable. Estimates for educational use, not financial advice.
How to Use This Savings Calculator
- Pick what you want to know. Choose How much will I have? to project your balance, or How much to save? to work backward from a goal.
- Enter your starting balance and monthly deposit. Use $0 if you’re starting from scratch.
- Enter the APY. Use the annual percentage yield your bank or credit union shows for the account. APY already includes compounding.
- Choose how many years. Then open Compare with another account and enter your current account’s APY to see what switching could be worth.
How Savings Account Interest Is Calculated
Banks pay interest on your balance and add it to the account, usually daily or monthly. Because that interest then earns interest of its own, your savings grow faster over time. The APY tells you how much you’d earn in one year on a balance you don’t touch, compounding included.
When you add money every month, each deposit earns interest from the time it lands. The calculator turns the APY into a monthly growth rate and applies it month by month:
Monthly rate = (1 + APY)1/12 − 1 Each month: Balance = Balance × (1 + monthly rate) + Monthly deposit
Savings Growth Examples
Example 1: $200 a month for 10 years
You start with $5,000 and add $200 a month to an account paying 4.00% APY. After 10 years, you’d have about $36,740. You put in $29,000, and interest adds about $7,740.
Example 2: The cost of a low-rate account
Same deposits, but the account pays 0.50% APY. After 10 years you’d have about $29,859, or roughly $6,881 less than at 4.00%. Rates vary widely between banks, so comparing APYs is one of the easiest ways to earn more.
Example 3: Saving for a $20,000 goal
You have $1,000 and want $20,000 in 5 years. At 4.00% APY, you’d need to save about $284 a month. Interest covers roughly $1,970 of the goal.
| Scenario | APY | Years | You put in | Interest | Final balance |
|---|---|---|---|---|---|
| $5,000 + $200/month | 4.00% | 10 | $29,000 | $7,740 | $36,740 |
| $5,000 + $200/month | 0.50% | 10 | $29,000 | $859 | $29,859 |
| $1,000 + $284/month | 4.00% | 5 | $18,030 | $1,970 | $20,000 |
Types of Savings Accounts
- Traditional savings account: offered by most banks, often with a low APY.
- High-yield savings account: usually offered by online banks, often paying several times the rate of a traditional account. Rates are variable.
- Money market account: a savings account that may come with checks or a debit card. Rates are variable and may require a higher balance.
- Certificate of deposit (CD): locks in a rate for a set term in exchange for limited access. See our CD calculator to compare.
Savings accounts at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, for each account ownership category.
Tips to Earn More on Your Savings
- Compare APYs, not just interest rates. APY includes compounding, so it’s the fair way to compare accounts.
- Automate your deposits. A scheduled monthly transfer makes saving consistent.
- Watch fees and minimums. A monthly fee can cancel out the interest on a small balance.
- Plan for taxes. Savings interest is generally taxable income. Banks typically send Form 1099-INT if you earn $10 or more in a year.
Frequently Asked Questions
How much interest will $10,000 earn in a savings account?
Multiply by the APY for a one-year estimate. At 4.00% APY, $10,000 earns about $400 in a year. At 0.50% APY, it earns about $50.
Is savings account interest paid monthly?
Many banks calculate interest daily and credit it to your account monthly. The APY reflects whatever schedule the bank uses, so you can compare accounts by APY alone.
Can my savings rate change?
Yes. Most savings and money market accounts have variable rates that can go up or down at any time. If you want a fixed rate, consider a CD.
What is the difference between APY and interest rate?
The interest rate is the base annual rate. APY adds the effect of compounding, so it’s equal to or higher than the rate. Use our APY calculator to convert between the two.
More free calculators
Sources
- Consumer Financial Protection Bureau: Regulation DD (Truth in Savings)
- FDIC: Understanding Deposit Insurance
- NCUA: Share Insurance Coverage
- IRS: Topic No. 403, Interest Received
This calculator provides estimates for educational purposes only and is not financial advice. Actual results depend on your account’s rate changes, fees, and taxes. Last updated: October 12, 2026.