See how your savings grow over time with compound interest. Model regular deposits, different interest rates, and compounding frequencies to plan your financial future. Our free savings calculator helps you set realistic savings goals and understand the power of compound growth.
Compound interest means you earn interest on your interest. Over time, this creates exponential growth. The more frequently interest compounds (daily vs monthly vs annually), the faster your money grows. Even small differences in interest rates can lead to significant differences over decades.
High-yield savings accounts currently offer 4-5% APY, significantly more than traditional bank accounts (0.01-0.5%). Money market accounts and CDs may offer even higher rates for longer commitment periods.
Starting to save 10 years earlier can more than double your final balance due to compound interest. A 25-year-old saving $200/month at 7% will have approximately $525,000 by age 65, while a 35-year-old saving the same amount will have only about $244,000.