Project your future balance with compound interest and real average savings rates.
Use this free savings calculator to see how your money can grow over time. Enter your starting balance and regular monthly deposits; the APY fills in with today's MonitorBankRates national average for the account type you choose, or pick your state to use the average banks and credit unions in your state are paying. Compare current savings account rates to find an APY well above the average.
Use your state's average savings rates
Loads the MonitorBankRates average APY for your state for the account type you select.
Compound Interest Savings Calculator
Enter your balance, deposits and rate. Results update as you type.
Contributions and interest by year
Year by year
| Year | Start Balance | Contributions | Interest | End Balance |
|---|
What Savings Earn at Today's Average Rates
As of September 21, 2026, the MonitorBankRates national average APY on a high yield savings account is 2.00% and the standard savings average is 0.82%. Starting with $1,000 and adding $200 a month for 5 years grows to about $13,706.40 at the high yield average, with $706.40 of that coming from interest. The same plan in a standard savings account at the average rate reaches $13,284.82, so moving to a high yield account earns $421.59 more over 5 years. The best savings accounts pay above these averages, so compare offers before you open one.
| $1,000 start plus $200 a month for 5 years | Avg APY | Ending balance |
|---|---|---|
| High yield savings | 2.00% | $13,706.40 ($706.40 interest) |
| High yield money market | 3.04% | $14,090.74 ($1,090.74 interest) |
| Standard savings | 0.82% | $13,284.82 ($284.82 interest) |
Averages are recalculated every day from the savings rates banks and credit unions publish, so this table reflects the market today rather than a sample rate.
How It Works
Compound interest is often called the eighth wonder of the world because of its ability to multiply wealth over time. Unlike simple interest, which is calculated only on the principal amount, compound interest is calculated on the principal plus the accumulated interest. This calculator grows your balance month by month at the APY you enter, adds each deposit, and shows how much of the ending balance came from your own money and how much came from interest.
Key Definitions
- Starting Balance: The money you deposit initially. This is the seed for your future growth.
- Monthly Contribution: The amount you add to your savings account every month. Regular contributions are the most powerful way to grow wealth over time.
- Annual Contribution Increase: How much you raise the monthly deposit each year. Increasing deposits alongside raises keeps your savings rate steady as income grows.
- APY (Annual Percentage Yield): The real rate of return earned on your savings over a year, including the effect of compounding. The calculator defaults to today's MonitorBankRates average for the account type you pick.
- Inflation: The expected annual rise in prices. The "in today's dollars" figure discounts the ending balance by inflation so you can see its purchasing power.
How to Use the Savings Calculator
-
Enter your starting balance
Type in the amount you have saved today. If you are starting from scratch, leave it at $0 and rely on the monthly contribution field to show how regular savings build over time.
-
Set your monthly contribution
Enter how much you plan to add each month. This is where most of the long term growth comes from; consistent monthly saving matters more than picking a perfect starting amount. Add an annual increase if you expect to save more each year.
-
Pick the account type and check the APY
Choose high yield savings, standard savings or money market and the APY updates to today's MonitorBankRates average for that account type, or pick your state to use the state average. Enter the rate you were quoted for a specific high yield savings account to see exactly what it earns.
-
Pick your time horizon
Enter the number of years you plan to save. Even small differences matter: 30 years of compounding produces dramatically more than 20 years, because the largest growth happens in the final decade. The comparison note shows what the same plan earns at the standard savings average versus the high yield average.
Frequently Asked Questions
What is the average savings account rate right now?
As of September 21, 2026, the MonitorBankRates national average APY is 2.00% on high yield savings accounts and 0.82% on standard savings accounts, computed from the rates published by more than 8,000 banks and credit unions. The top online savings accounts pay above the high yield average, and rates vary by state, which is why this calculator lets you load your state's average.
How accurate is this savings calculator?
This calculator provides a mathematical projection based on the inputs you provide. However, it assumes a fixed APY for the entire duration. In reality, bank rates move with the Federal Reserve's benchmark rate, so use the calculator for directional planning, not exact dollar predictions.
What is the difference between APY and APR?
APR (Annual Percentage Rate) is typically used for loans and does not include compounding. APY (Annual Percentage Yield) is used for savings and investments and does include the effects of compounding. For savings accounts, always compare APY to APY; that is the apples to apples number.
Do I have to pay taxes on interest?
Generally, yes. In the United States, interest earned on bank accounts (savings, checking, CDs) is considered taxable income by the IRS. Banks send a 1099 INT form each January if you earn $10 or more in interest. The interest is taxed as ordinary income at your marginal federal and state rate.
Is my money safe in an online savings account?
Yes, as long as the bank is a member of the FDIC (Federal Deposit Insurance Corporation). FDIC insurance protects your deposits up to $250,000 per depositor, per insured bank. Credit unions provide equivalent NCUA insurance. If you have more than $250,000, spread it across multiple insured institutions.
How does compounding frequency really impact my balance?
Less than people think. The difference between daily and monthly compounding on a 5% APY account is roughly 0.05% per year, a few dollars on $10,000. APY itself already bakes in the compounding frequency, so a 4.50% APY savings account beats a 4.40% APY account regardless of how each one compounds underneath. That is why this calculator works from APY alone.
Should I save in a regular savings account, HYSA, or CD?
For most savers, a high yield savings account at an online bank is the right default: a rate near or above today's high yield average with full liquidity and no minimums. Standard savings accounts at branch banks pay a fraction of that, as the comparison note above shows in dollars. CDs may pay slightly more if you are willing to lock up the money. Try the CD vs. HYSA calculator to compare specific rate offers side by side.
What happens if I miss monthly contributions?
The calculator assumes you contribute every single month. In real life, missing a few contributions compounds against you over time; one missed month of $300 over 30 years at 5% costs you roughly $1,300 in final balance. Automating transfers from checking to savings on payday is the single most reliable way to keep contributions consistent.
How does inflation affect my real returns?
The ending balance is nominal (raw dollars). The "in today's dollars" figure discounts it by the inflation rate you enter, historically around 2% to 3% a year, to show purchasing power. A 5% APY in a 3% inflation environment gives you roughly 2% in real terms. If you are saving long term, you may want to consider the investment calculator for higher return options that historically outpace inflation.
