Savings calculator, otherwise called "savings account calculator" is a versatile tool that can help you plan how to save up enough money to buy your dream car, trip, etc. It works in both directions - go ahead to either find out how much you'll save OR how much you need to deposit if you have a certain amount as your goal. It operates on a few variables: initial balance, meaning how much can you put in as an initial deposit; monthly deposit, interest rate and term, meaning how long will you be saving for, be it months or years. Moreover, should you be saving for years, there is a table underneath the savings calculator that will show you what your balance will look like at the end of each year. It's a special kind of a compound interest calculation, with a little twist - monthly deposits.
Because savings account calculator works in different ways, first let's focus on the most basic use - let's say we are saving for our dream bike:
2000 €- and this is our final balance that we want to achieve.
26.76 €monthly to buy that bike in 2 years. Congratulations!
The other way to use savings account calculator is to find out what initial deposit you need to place once we know how much we can deposit monthly:
9 monthsis the deadline.
1797.84 €initial deposit.
In the advanced mode, you can see what's the total contribution and total interest, so that you know. The variable compounding frequency introduces some noise to calculations, go ahead and use the annual percentage yield calculator to get a more standardized picture. The investment calculator does essentially the same thing as the savings tool, but the wording is a bit different, so some people might find it less confusing and more appropriate for their own situation.