How your savings grow
Savings grow in two ways: the money you deposit, and the interest the account pays on your balance. Banks advertise interest as an APY (annual percentage yield), which already includes compounding. This calculator turns the APY into an equivalent monthly rate, adds your deposits at the end of each month, and grows the balance month by month.
Worked example
You have $5,000 in a high-yield savings account paying 4.5% APY and add $200 a month. After 5 years:
- Your deposits total $17,000 ($5,000 + 60 × $200)
- Interest adds about $2,629
- Your balance is about $19,629
Planning for a savings goal
Switch to Reach a goal to work backward. To save $10,000 in 3 years from nothing at 4.5% APY, you need to deposit about $260 a month. Without interest you would need $278. The interest does part of the work for you.
Tips to save faster
- Automate it. Schedule a transfer for the day after payday, so saving happens before spending.
- Compare APYs. Online banks often pay several times more than traditional savings accounts.
- Save windfalls. Put part of tax refunds, bonuses and raises straight into savings.
- Separate goals. Many banks let you open several accounts, one for each goal.
Locking money away for a fixed term? Compare with the CD calculator.
Last reviewed October 2026.