How savings grow
Your balance grows from three sources: what you start with, what you add, and the interest earned on both. This calculator lets you add deposits every month, every year, or both, and choose whether they arrive at the start or end of each period. Deposits at the start earn a little more because they're invested longer.
After tax and after inflation
Interest from savings accounts and CDs is usually taxed as ordinary income each year. Enter your tax rate to see growth after tax. Inflation quietly reduces what money can buy, so the calculator also shows your ending balance in today's dollars. If your after-tax rate is below inflation, your savings are losing buying power even as the balance rises.
Example
$10,000 at 4.5% compounded monthly earns $459.40 in a year, an APY of 4.594%. With 3% inflation, about two-thirds of that gain is eaten by rising prices.
Frequently asked questions
Where can I get the rate to enter?
Use the APY shown by your bank with yearly compounding, or the stated rate with the compounding the bank uses. Both give the same result.
Are savings account rates fixed?
Usually not. High-yield savings rates can change at any time. CD rates are locked for the term.