3.1.8 A savings calculator

How fast can you save towards a goal? Try the Financial Goal Calculator to see how your savings will grow when you make a regular contribution to a savings plan.

Here's an example: Suppose Jennifer has $250 in her savings account on January 25, 2017. She is thinking of buying a house in the future and would like to be able to save up $10,000. She decides she can have her bank make an automatic transfer of $250 every month to her savings account. How long will it take her to reach her savings goal with an interest rate of 4%? Inputting her information into the calculator, she finds that in only 3 years she can attain her goal.

Screenshot from the Financial Goal Calculator

[Source: Screenshot from the Financial Goal Calculator]

The Rule of 72

If you don't have a calculator, the Rule of 72 gives you a quick way to see how your money grows with compound interest.

The difference in the amount of interest paid may appear to be small, but over time it can amount to a lot more savings. The key is to start saving as soon as possible.

Page details

Date modified: