Savings Calculator With Periodic Deposits

This calculator is used to calculate the interest accrued and the future value of your savings amount in a bank savings account or CD or bond or any other investment. This calculator uses compounding of interest method for interest calculation. It also has an option to add periodic deposits in regular intervals.

Using Savings Calculator

1. Select the Currency of your choice.
2. Enter the Initial Balance amount (principal amount). (NOTE: If you are planning to do only the periodic deposit and not an initial balance, then enter 0 in this field.)
3. Enter the yearly compound Interest Rate in percentage.
4. Select the Compounding Period from the drop down.
5. Enter the Periodic Deposit amount. (NOTE: This is an optional field. So, if you just want to use only the Initial Balance amount then enter 0 in Periodic Deposit field.)
6. Select the Frequency of the periodic deposit from the drop down.
7. Select, when you are planning to deposit, during the Beginning or the End of the deposit frequency.
8. Enter the savings Duration either in the form of years, months and days or by specifying the starting and ending date.
9. Finally, press the Calculate Savings button. The final amount, interest accrued and the total deposits will be calculated and the result will be displayed below the button.

There are several types of financial savings. Few of the low-risk or no-risk savings includes bank savings account, High-Yield savings account, CD (Certificate of Deposit), FD (Fixed Deposit), IRA in US, ISA in UK, etc. When you save your money in these accounts, the money will slowly grow with the help of compound interest. Compound Interest is the type of interest calculated on your initial investment amount or principal along with the interest accrued over the previous period of time. i.e., Interest is calculated on the already accrued interest.

Formula To Find Compound Interest With Just The Initial Deposits

This formula is used when you are doing savings with one time deposit.

A = P (1 + r/n)^nt

Where:

• A = Final Amount
• P = Principal Amount
• r = Annual Interest Rate (in decimal)
• n = Compounding Period (number of times interest applied per year)
• t = Time (in years)

Formula To Find Compound Interest With Initial And Periodic Deposit

However, if you like to add more money to your savings by periodically adding a small amount to the initial deposit, then the formula will be different. In fact, there are two formulas based on when you are planning to do the periodic deposit, beginning or end of the period. Let us see the formulas

If deposited at the BEGINNING of each period

A = P (1 + r/n)^nt + D × f {[(1 + r/n)^(nt) - 1] / (r/n)} × (1+r/n)

If deposited at the END of each period

A = P (1 + r/n)^nt + D × f {[(1 + r/n)^(nt) - 1] / (r/n)}

Where:

• A = Final Amount
• P = Principal Amount or Initial Balance
• D = Periodic Deposit
• r = Annual Interest Rate (in decimal)
• n = Compounding Period (number of times interest applied per year)
• t = Time (in years)
• f = Number of periodic payments in a compounding period

• About Compound Interest at Wikipedia.
• About the formula for compound interest along with periodic deposit at The Calculator Site.