Savings Calculator
See how a high-yield savings account or CD grows with APY compounding and regular contributions.
Your savings
Leave at 0 for a one-time CD deposit.
Watch your savings grow
With high-yield savings and CDs paying real interest again, a clear projection helps you plan toward a goal and choose between accounts.
Works from APY
Enter the account's APY directly — the figure banks advertise and the one that lets you compare accounts fairly.
Initial + monthly
Model a lump-sum CD, a regular savings habit, or both, with an initial deposit plus recurring monthly contributions.
Interest vs deposits
See exactly how much of your balance is your own money versus interest earned over the term.
Growth chart
A year-by-year bar chart shows your balance building toward the goal.
Savings or CD
Flexible enough for a high-yield savings account or a fixed-term certificate of deposit.
100% private
Everything runs in your browser — your figures never leave your device.
What people plan with it
Emergency fund
See how quickly regular deposits build a 3–6 month safety net.
House deposit
Project a savings plan toward a down payment by a target date.
CD laddering
Compare the maturity value of CDs at different terms and APYs.
Savings goals
Work out the monthly contribution needed to reach a target.
Frequently Asked Questions
What is APY and how is it different from interest rate?
APY (Annual Percentage Yield) is the effective annual return including the effect of compounding, whereas the nominal interest rate ignores compounding. A 4.4% rate compounded monthly gives about a 4.5% APY. Because APY already bakes in compounding, it is the figure to compare between savings accounts and CDs — this calculator works directly from the APY you enter.
How is a CD different from a savings account?
A Certificate of Deposit (CD) locks your money for a fixed term — say 12 months — usually at a higher fixed APY, with a penalty for early withdrawal. A high-yield savings account has a variable rate but lets you add or withdraw anytime. For a CD, set the monthly contribution to 0 and enter the term; for a savings account, add a monthly contribution and any term you like.
Is the interest I earn taxable?
Yes. Interest from savings accounts and CDs is taxed as ordinary income at the federal level (and often by your state) in the year it is earned, reported on a 1099-INT. This calculator shows the gross interest before tax. Tax-advantaged accounts like IRAs shelter interest, which is why they are preferable for long-term retirement money.
Will my savings keep up with inflation?
Only if the APY exceeds the inflation rate. When high-yield savings pays 4–5% and inflation is around 3%, your money grows in real terms. In periods of low rates, cash savings can lose purchasing power even while the balance rises. For goals more than a few years away, investing typically outpaces savings — at the cost of higher risk.
How much should I keep in savings?
A common guideline is an emergency fund of three to six months of essential expenses in an accessible high-yield savings account, plus any money you will need within the next few years. Beyond that, funds earmarked for long-term goals usually belong in investments, where expected returns are higher. This calculator helps you see how fast a savings target is reached.
Does compounding frequency matter?
It has a small effect. More frequent compounding (daily vs monthly) slightly increases the effective yield for the same nominal rate — but since this tool works from APY, which already reflects compounding, the comparison between accounts is apples-to-apples. Focus on the APY rather than the stated rate or compounding schedule.
Understanding Savings Growth
After years of near-zero rates, high-yield savings accounts and CDs pay meaningful interest again, making cash a genuine part of a financial plan rather than just a holding pen. Understanding how savings grow — and where the limits are — helps you decide how much to keep in cash and how much to invest.
APY: the number that matters
Banks advertise an Annual Percentage Yield, which already includes the effect of compounding. This makes APY the right figure for comparing accounts: a 4.5% APY beats a 4.4% APY regardless of how often each compounds. The nominal interest rate, by contrast, understates your return because it ignores interest-on-interest. When shopping for a savings account or CD, compare APYs and ignore the marketing around compounding frequency.
Savings accounts vs CDs
High-yield savings accounts offer a variable rate and full access to your money — ideal for an emergency fund or near-term goals. CDs lock your money for a fixed term in exchange for a fixed, often higher rate, with an early-withdrawal penalty. CDs suit money you are confident you will not need before maturity. A popular middle ground is a CD ladder — splitting savings across CDs maturing at staggered dates — which blends higher rates with periodic access.
The role of regular contributions
For most savers, consistent monthly deposits drive the balance far more than interest, especially over shorter horizons. Automating a fixed monthly transfer the day after payday — paying your savings first — is the single most effective savings habit. The calculator shows how even modest, steady contributions accumulate, and how interest gradually adds to them as the balance grows.
Tax and inflation
Two forces work against cash savings. Interest is taxed as ordinary income each year, so your after-tax yield is lower than the headline APY — a saver in the 22% bracket keeps about 78% of the interest. And inflation erodes purchasing power: if savings earn 4.5% while inflation runs 3%, the real gain is only about 1.5%. When the APY trails inflation, cash loses real value even as the balance rises, which is why long-term money usually belongs in investments rather than savings.
How much cash is right
The standard framework is to hold an emergency fund of three to six months of essential expenses in accessible high-yield savings, plus any money needed within the next two to three years, and to invest the rest for higher long-run returns. Keeping too little in cash risks forced borrowing in an emergency; keeping too much sacrifices growth to inflation. This calculator helps you size the cash portion by showing how fast a given savings target is reached at today's rates.