Savings Parameters

Initial Savings Amount ₹1,00,000
₹0 ₹12.5L ₹25L ₹37.5L ₹50L
Enter your current savings or investment amount (₹0 to ₹50 lakhs)
Monthly Contribution ₹10,000
₹0 ₹25,000 ₹50,000 ₹75,000 ₹1,00,000
Enter monthly savings amount (₹0 to ₹1,00,000)
Annual Interest Rate (Expected) 8%
%
1% 6% 11% 16% 20%
Expected annual return rate (1% to 20%)
Investment Time Period 10 years
years
1 year 10 years 20 years 30 years 40 years
Investment duration (1 to 40 years)
Compounding Frequency Monthly
How often interest is compounded
Future Value
₹34,87,529
248% Growth
Total Contributions ₹13,00,000
Interest Earned ₹21,87,529
Final Amount ₹34,87,529
₹18,229
Monthly Earnings
₹1,73,529
Annual Growth
8.3%
Effective Rate

Year-by-Year Growth

Year Start Balance Contributions Interest End Balance

Rate Comparison

Interest Rate Final Amount Interest Earned Effective Return

About Savings Calculator

The Savings Calculator helps you estimate the future value of your savings with compound interest. It considers initial savings, monthly contributions, interest rates, and time to show how your money can grow.

How Savings Calculation Works

1

Compound Interest Formula

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

Where A = future value, P = principal, r = annual rate, n = compounding periods, t = years, PMT = monthly contribution

2

Monthly Contributions

Regular monthly savings accelerate growth through compounding

Even small monthly contributions can significantly increase final amount

3

Compounding Effect

Interest earned in each period is added to principal

Next period's interest calculated on increased principal (compound interest)

Savings Strategies

Emergency Fund

  • Target: 3-6 months expenses
  • Where: High-yield savings account
  • Rate: 3-5% annual interest
  • Priority: Build before investing

Short-Term Goals

  • Time: 1-3 years
  • Where: FDs, debt funds
  • Rate: 5-7% returns
  • Risk: Low to moderate

Long-Term Goals

  • Time: 5+ years
  • Where: Equity mutual funds
  • Rate: 10-12% returns
  • Risk: High but rewarded

Retirement

  • Time: 20+ years
  • Where: PPF, NPS, equity
  • Rate: 8-10% returns
  • Tip: Start early for compounding
Note: Calculator provides estimates based on inputs. Actual returns may vary based on market conditions, inflation, and investment performance. Past performance doesn't guarantee future results. Consider consulting a financial advisor for personalized advice.

How does compound interest work in savings?

Compound interest means earning interest on both your initial savings and accumulated interest. For example, ₹1,00,000 at 8% for 10 years grows to ₹2,15,892 with compounding.

What's the difference between simple and compound interest?

Simple interest calculated only on principal. Compound interest calculated on principal + accumulated interest. Compound interest yields higher returns over time.

How much should I save monthly?

Aim for 20% of income. For ₹50,000 monthly income, save ₹10,000. Adjust based on financial goals and expenses.

Where to invest savings for best returns?

Short-term: FDs, savings accounts (4-7%). Medium-term: Debt funds (6-8%). Long-term: Equity mutual funds (10-12%+). Diversify based on time horizon.