Saving a fixed amount each month builds wealth through consistent contributions and compound growth. This calculator projects the future value of regular monthly savings.
How to use this calculator
- Enter your starting balance (or zero if starting fresh).
- Enter how much you plan to save each month.
- Enter the expected annual interest rate.
- Enter the number of years you will save.
- Review the projected final amount and growth.
Formula
Future value combines the growth of your starting balance with the future value of monthly contributions, using monthly compounding at the annual rate.
Example
Saving $200 per month for 15 years with a $1,000 starting balance at 5% annual return grows to about $54,000, with roughly $37,000 from contributions and growth.
Frequently asked questions
- Is the interest rate guaranteed?
- No. The rate is an estimate of average annual returns. Actual investment results depend on market performance and account type.
- Should I include an initial balance?
- Yes, if you already have money saved. The starting balance grows alongside your monthly contributions.