If I Put Away 100 Dollars A Month Calculator
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Reviewed by Calculator Editorial Team
This calculator helps you project how much you'll save if you put away $100 every month. It accounts for compound interest, which means your savings grow over time as interest is added to your principal balance.
How to Use This Calculator
Using this calculator is simple:
- Enter the amount you plan to save each month (default is $100).
- Select the annual interest rate you expect to earn (default is 5%).
- Choose how many years you plan to save (default is 10 years).
- Click "Calculate" to see your projected savings.
The calculator will show you the total amount you'll have saved after the selected time period, including the effect of compound interest.
How Compound Savings Works
Compound interest means that interest is added to your principal balance, and future interest is calculated on this new amount. This creates exponential growth over time.
Formula Used
Future Value = P × (1 + r/n)^(nt)
Where:
- P = Monthly contribution ($100)
- r = Annual interest rate (as decimal)
- n = Number of times interest is compounded per year (12 for monthly)
- t = Number of years
For this calculator, we use the future value of an annuity formula, which accounts for monthly contributions with compound interest.
Example Calculation
Let's say you save $100 every month for 10 years at an annual interest rate of 5%.
Using the formula:
Future Value = $100 × [(1 + 0.05/12)^(12×10) - 1] / (0.05/12)
Calculating this gives approximately $15,600.
This means you would have about $15,600 after 10 years if you save $100 each month at 5% annual interest.