Savings Calculator
Consistent investments over a number of years can be an effective strategy to accumulate wealth. Even small additions to your savings add up over time. This calculator demonstrates how to put this savings strategy to work for you!
| Definitions |
| Starting
amount |
The
starting balance or current amount you have invested or saved. |
| Additional contributions |
The amount that you
plan on adding to your savings or investment each period. The
investment period options include monthly, quarterly and annually. |
| Years |
The total number of
years you are planning to save or invest. |
| Rate of return |
The annual rate of
return for this investment or savings account. Historically the major
stock indexes have averaged 11% to 12% per year. If you plan on
withdrawing your money within five years, you may wish to choose a more
conservative rate of return. |
| Compounding |
This is the frequency
that your investment's interest or income is added to your account. The
more frequently this occurs, the sooner your accumulated interest
income will generate additional interest. For stock and mutual fund
investments you should choose 'Annual'. For savings accounts and CDs
all of the options are valid, although you will need to check with your
financial institution to find out how often interest is being
compounded on your particular investment. |
