Calculate Savings Account Earnings

Calculate your savings account earnings with this simple online calculator. Learn how interest rates, deposit amounts, and compounding periods affect your returns over time.

How to Use This Calculator

To calculate your savings account earnings:

Enter the initial deposit amount in the "Initial Deposit" field.
Enter the annual interest rate in the "Annual Interest Rate" field.
Select the compounding frequency from the dropdown menu.
Enter the number of years you plan to save in the "Number of Years" field.
Click the "Calculate" button to see your results.

The calculator will display your total earnings and the future value of your savings account.

Formula Explained

The calculator uses the compound interest formula:

Compound Interest Formula

A = P(1 + r/n)^(nt)

Where:

A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the time the money is invested or borrowed for, in years

The formula calculates the future value of your savings account by accounting for compounding interest over time.

Worked Example

Let's calculate the future value of a $1,000 savings account with a 3% annual interest rate, compounded quarterly, over 5 years.

Example Calculation

P = $1,000

r = 3% = 0.03

n = 4 (quarterly compounding)

t = 5 years

A = 1000(1 + 0.03/4)^(4*5) = $1,159.73

After 5 years, your savings account would grow to approximately $1,159.73, earning $159.73 in interest.

Frequently Asked Questions

What is compound interest?: Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods. This means your money grows exponentially over time.
How often should interest be compounded?: The more frequently interest is compounded, the higher your earnings will be. Common compounding frequencies are annually, semi-annually, quarterly, and monthly.
Is this calculator accurate for all savings accounts?: This calculator provides an estimate based on standard compound interest formulas. Actual earnings may vary slightly depending on your bank's specific calculation methods.
Can I use this calculator for loans?: Yes, you can use this calculator to estimate loan repayments by entering negative values for the interest rate.
How do I find my savings account interest rate?: Your interest rate can typically be found on your bank's website, in your account statements, or by contacting your bank's customer service.