Calculate how your savings grow over time with regular deposits and interest.
A savings calculator projects how your savings will grow over time with regular contributions and compound interest. Whether you are saving for an emergency fund, a home down payment, a car, or retirement, our compound interest savings calculator shows your exact savings trajectory to help you plan effectively.
Compound interest means you earn interest on both your principal and previously earned interest. Rs. 10,000 saved at 7% annual interest grows to Rs. 19,672 in 10 years and Rs. 38,697 in 20 years — without adding any additional money. Adding regular monthly contributions accelerates growth dramatically through the power of compounding.
To calculate how much to save monthly to reach a goal: Monthly Savings = FV × r / ((1+r)^n − 1), where FV is future value goal, r is monthly interest rate, and n is months. For example, to save Rs. 5 lakh in 3 years at 6% annual interest, you need to save approximately Rs. 12,700 per month.
Regular savings accounts offer 3-4% interest (SBI, HDFC, ICICI). High-yield savings accounts from small finance banks offer 5-7%. Liquid mutual funds offer 6-7% with daily liquidity. For amounts you will not need for 1+ years, FDs and debt mutual funds offer better returns than savings accounts. Always keep 3-6 months of expenses in easily accessible savings as an emergency fund.
Set up automatic transfers on your salary credit date so money moves to savings before you can spend it. This "pay yourself first" approach is the most effective savings strategy. Even saving just 10% of your income consistently over 30 years builds substantial wealth through compounding. Start with any amount — consistency matters more than the initial amount saved.
A common guideline is the 50/30/20 rule: save at least 20% of your monthly income. Increase this when possible to build a strong financial cushion.
Compound interest means you earn interest on your principal AND on previously earned interest. Over time, this creates exponential growth in your savings.
Use our calculator by entering your monthly savings, interest rate, and target amount. It will calculate the exact time needed.
An emergency fund is 3-6 months of living expenses kept in an easily accessible account. It protects you from unexpected expenses without going into debt.
