How to Calculate Interest on your Savings

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Calculating interest on your savings could never be easier with all the simple or complex calculators found on the net. Just the other day I found this Simple Savings Calculator (click on the link to make the simple savings calculator pop up) that can calculate how much interest you’d make on an initial amount with or without extra monthly payments. The best part about this calculator is that you can calculate compounded interest on a monthly, quarterly, semiannually or annually basis.

Step 1

Click on the calculator link above and enter the initial amount of money you have in your high interest savings account.

Step 2

If you wish to do so, enter a monthly deposit amount. Most individuals don’t have a set monthly deposit amount so it’s ok to leave it with zero. But just for education purposes, try adding different numbers to see how much you’d gain over a 10 year period. You’d be surprised what an extra $100 a month can do over a ten year span with a high interest rate.

Step 3

Enter the interest rate that you receive on your high interest savings account. Once again play around with numbers and see how a small percentage change can benefit you so much more. Don’t forget to add how the interest is compounded. Most banks will have the interest compounded yearly.

Step 4

Insert the length of time in which you’d like to have you money in the bank for. Once you’re finished adding all the necessary info, it’s time to calculate how much you would end up with. Remember that your interest rate will most likely not be the same for all 10 years so the data won’t be really accurate.

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Filed Under Banking, Money Management 

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