Savings Calculator

Most financial experts recommend saving 3–6 months of living expenses in an easily accessible account. If your monthly expenses are $3,000, aim for $9,000–$18,000. Start with a $1,000 starter fund if you're just beginning, then build from there.

For a high-yield savings account (HYSA) in 2025, use 4–5%. For a standard bank savings account, rates are typically 0.01–0.5%. For long-term investing in index funds, 7% is a common conservative estimate based on the S&P 500's historical average after inflation.

Compound interest means you earn interest on your interest. For example, $10,000 at 5% annual interest earns $500 in year one. In year two, you earn 5% on $10,500, giving you $525. Over decades, this snowball effect becomes dramatic — often called 'the eighth wonder of the world'.

Work backward from your target: decide when you need it and what rate you can earn. For example, to save $20,000 in 3 years at 4.5% interest starting from zero, you need about $510/month. Use this calculator's presets as starting points.

The 50/30/20 rule suggests allocating 50% of take-home pay to needs, 30% to wants, and 20% to savings and debt repayment. On a $4,000/month take-home, that means $800/month toward savings. Adjust based on your income, expenses, and goals.

Yes — significantly. At 0.5% (typical big bank), $10,000 grows to $10,050 in a year. At 4.5% (HYSA), the same $10,000 grows to $10,450. That's 9× more interest for simply switching accounts. HYSAs are FDIC-insured up to $250,000, making them a low-risk, high-reward choice for short-term savings.