With a savings account calculator, figuring out the earning power of your bank savings account has never been easier.
Your bank savings account is not going to tell you amount of money you will earn or accumulate based on your deposit over time. The savings account will clearly display the interest rate that is earned on the account but that does not tell you how much you will have after a specific period of time or how your savings will change if you add more money to the account or if the interest rate on the account changes. The savings account calculator is the perfect tool to help determined how much you will accumulate with a savings account over time.
The savings account calculator can determine the amount earned over any time period as well as compare the amount of savings that would be earned based on different savings accounts rates; this can be a great tool for comparing different bank savings accounts and the savings account rates offered.
The savings account calculator requires only a few numbers to be input by the user. The savings calculators first input is the initial investment amount in the account. The next input for the savings account calculator is the expected interest rate to be earned on the account. Now you have the option to enter any amount that you may wish to add the savings account at regular intervals. The time horizon for the investment or savings has to be entered into the calculator, simply enter the number of years you plan to invest your money. Finally, your federal tax rate can be added to calculate the after tax earnings generated from the savings account.
From here you can now determine the growth of your savings account. Review the accumulated savings amount, change the variables such as the amount deposited or time horizon and calculate a new savings amount if you like. Savings account calculator users can also create a savings plan based on current interest rates and available savings. The savings calculator can also be used to compare the results of your savings at the current interest rates against other interest rates that may be available from similar investment products or different banks.
The savings account calculator will demonstrate just how easily you can put a savings strategy to work for you. Please note, the actual rate of return on your investments can vary over time depending on changing factors such as the interest rate earned, additionally deposit amounts and your tax bracket. Because the interest rates earned on a savings account and your tax rate in the future can’t be determined with certainty, the savings account calculator is intended to give you only an idea of what your savings could be worth based on the inputs made into the calculator and the assumptions you make.
Savings Account Calculator APY
APY is an acronym for annual percentage yield or the return on an investment over the course of a year. APY on a savings account is different from simple interest because it takes compounding into account. Compound interest is the interest paid on principal and on accumulated interest. The rate at which compound interest accrues depends on the frequency of compounding; the higher the number of compounding periods, the greater the compound interest and the higher the APY.
Compound interest will make a deposit grow at a faster rate than simple interest. A savings account APY will be affected by the interest rate offered on the savings account as well as the frequency of compounding. Use this calculator to determine how much a bank savings account can grow using the power of compound interest. The calculator will calculate the APY which is the actual interest earned per year.
With so many savings accounts and savings account rate options available for individual savings comparing the advantages and disadvantages of each becomes very important. The savings account calculator with APY allows the user to compare different savings rates and different savings account options. Even a small difference in the interest earned on a savings account can significantly affect the balance over time.