Recurring Savings Calculator
Calculate how your regular monthly savings grow with compound interest. See year-by-year balance for any deposit amount, interest rate, and duration.
How to use
- Enter your monthly savings amount.
- Enter the expected annual interest rate.
- Enter the savings duration in years.
- Click Calculate to see your maturity amount.
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A recurring savings plan is one of the most reliable ways to build wealth — you commit to saving a fixed amount every month, and the balance earns compound interest over time. The power comes from consistency: even modest monthly savings of $100–$500 can accumulate to significant sums over 10–20 years due to compounding.
The formula compounds monthly: each month's deposit immediately starts earning interest, and all previous deposits continue compounding. This is more powerful than annual compounding because interest is calculated and added 12 times per year instead of once. Compare this calculator with a lump-sum investment to see why starting a recurring plan early often beats a single large deposit later.
Frequently Asked Questions
How is recurring savings different from a lump-sum investment?
With a lump sum, you invest all money at once and the full amount compounds from day one. With recurring savings, you add money gradually — early deposits have more time to compound, later ones have less. For the same total amount, a lump sum invested early typically produces a higher final value, but recurring savings is more practical for most people.
What interest rate should I use?
For bank savings accounts: 2–5% in most countries. High-yield savings accounts: 4–6%. Bonds/fixed income: 4–7%. Balanced funds: 6–9%. Equity funds (higher risk): 8–12%. Use a conservative rate for planning — it's better to be pleasantly surprised than disappointed.
How often is interest compounded in this calculator?
Monthly compounding is used, which matches most savings accounts and recurring deposit products. Annual compounding would give a slightly lower result; daily compounding would give slightly more.
What is the difference between this and a SIP?
A SIP (Systematic Investment Plan) is a recurring investment in mutual funds, which invest in stocks or bonds and carry market risk. A recurring savings plan typically refers to a bank deposit or fixed-income product with a guaranteed rate. The math is the same, but the risk profile differs significantly.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.