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Savings Calculator

This savings calculator can help you estimate how much interest your savings can earn overtime. That way, you can get a clearer picture of your long-term savings and decide whether an account is right for you.

Savings Calculator

How to use a savings calculator

You can use the savings calculator to estimate what your savings could look like in several years' time. It may help to know some numbers to provide a more accurate estimate, such as:

  • Starting balance — How much money you have in your savings right now
  • Monthly contributions — How much you plan to add to your account on an ongoing basis
  • Annual interest rate — This is the interest that you expect to earn from your account annually
  • How frequently does your interest compound? — Some accounts compound interest daily, monthly, or annually, which can make a difference for your final estimate.

How much should you keep in a savings account?

How much you should keep in a savings account depends on your financial goals, as well as any monthly service fees you may be trying to avoid.

Common uses for savings accounts include:

  • An emergency fund — Experts recommend 3-6 months of savings in case of emergencies
  • A vacation — Saving for an upcoming vacation can prevent credit card debt after the fact.
  • A major life event — Getting ready for a down payment? A wedding? A new addition to the family? All of these are great reasons to add to your savings

You will want to keep a high enough balance in your account to avoid any monthly service fees, which are charged by some bank accounts.

You may also want to keep a higher balance in your bank accounts to qualify for a premium account, such as Citigold.

How is savings account interest calculated?

Simple interest is easy to calculate: your interest is the principal multiplied by the interest rate multiplied by the number of time intervals.

However, what most people want to know when calculating their savings account interest over time is compound interest, or how that interest will build upon itself and grow over time. Calculating compound interest is a bit trickier than calculating simple interest. You can calculate monthly compound interest over the course of a year with the formula:



  • A = Final sum
  • P = Principal
  • r = Interest rate
  • n = number of times interest is compounded in a time frame
  • t = time frame

But if that math leaves you scratching your head, the above simple, savings interest calculator from Citi does the math for you, so you can focus on saving.