Monthly Savings Calculator
See how regular monthly deposits grow into wealth with compound interest.
Investment Plan
Milestones
Timeline Comparison
| Years | Total Value | Interest |
|---|---|---|
| 5 years | $44,188 | +$9,188 |
| 10 years | $102,571 | +$37,571 |
| 15 years | $189,554 | +$94,554 |
| 20 years | $319,144 | +$194,144 |
| 30 years | $799,858 | +$614,858 |
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The Power of Consistent Investing
You don't need a large sum to build wealth. Small, consistent monthly savings grow into substantial amounts through the magic of compound interest. The secret isn't how much you start with—it's how long you stay invested.
This calculator shows exactly how your monthly deposits grow over time, when you'll hit major milestones, and how different timelines compare.
$500/Month at 8% Return
| Years | Total Invested | Interest Earned | Total Value |
|---|---|---|---|
| 5 years | $30,000 | +$6,653 | $36,653 |
| 10 years | $60,000 | +$31,473 | $91,473 |
| 20 years | $120,000 | +$174,510 | $294,510 |
| 30 years | $180,000 | +$565,180 | $745,180 |
Notice: Interest exceeds your contributions after ~15 years. By year 30, interest is 3x what you invested!
Why Time Beats Amount
Saves $300/month for 10 years (age 25-35)
Then stops—lets it grow until 65
Total invested: $36,000
Value at 65: $642,000
Saves $300/month for 30 years (age 35-65)
Never stops—continuous saving
Total invested: $108,000
Value at 65: $447,000
Person A invested 3x less but ended up with 43% more. Starting early is everything.
Key Concepts
Dollar Cost Averaging
Fixed monthly investing buys more when prices are low, less when high. This averages your cost and reduces timing risk.
Milestone Tracking
See when you'll hit $100K, $500K, $1M. These checkpoints keep you motivated on the long journey.
Automate It
Set up automatic transfers on payday. What you don't see, you don't spend. Discipline becomes effortless.
Increase With Raises
When income goes up, increase savings proportionally. Same lifestyle, but wealth builds 40%+ faster.
Calculator Features
Frequently Asked Questions
How much will my monthly savings grow to?
It depends on three factors: amount, rate, and time. Example at 8% return: $500/month for 10 years = $91,473 ($60,000 invested). $500/month for 20 years = $294,510 ($120,000 invested). $500/month for 30 years = $745,180 ($180,000 invested). Notice how doubling time from 10 to 20 years more than triples the result? That's compound interest accelerating in later years.
What is a SIP (Systematic Investment Plan)?
SIP is investing a fixed amount at regular intervals (usually monthly) into mutual funds or stocks. Benefits: (1) Rupee/Dollar Cost Averaging—buy more units when prices are low. (2) Discipline—automatic investing prevents emotional decisions. (3) Accessibility—start with small amounts ($50-100). (4) Compound growth—consistent investing builds wealth over time. This calculator works for SIPs—enter monthly amount and expected return to see projections.
What interest rate should I assume for my savings?
Use realistic rates based on investment type: Savings Account: 3-5%. Bonds/CDs: 5-7%. Balanced Funds: 7-8%. Stock Index Funds: 8-10% (historical S&P 500 average). Growth Stocks: 10-12% (higher risk). Conservative approach: Use 7-8% for long-term planning. Never assume 12%+ for serious financial goals—you'll likely fall short.
How long does it take to become a millionaire with monthly savings?
At 8% return: $500/month: 38 years. $1,000/month: 30 years. $2,000/month: 24 years. Starting earlier dramatically helps: Starting at 25 with $500/month = millionaire by 63. Starting at 35 with $500/month = millionaire by 73. Starting at 45 with $500/month = need $1,100/month to reach by 73. Time is your biggest advantage!
Should I save monthly or invest a lump sum?
If you have a lump sum, invest it all immediately (statistically better ~70% of the time). But if you're building wealth from income, monthly investing is the only option—and it works great! Benefits of monthly: Forces discipline and consistency. Dollar-cost averaging reduces timing risk. Matches paycheck cycle. Easier to start small and increase. Our calculator combines both—enter starting balance (lump sum) + monthly deposits.
How does compound interest accelerate over time?
Compound interest is exponential, not linear. Example: $500/month at 8% for 30 years. Year 10: $91,473 (31% of journey). Year 20: $294,510 (63% of journey). Year 30: $745,180 (100%). Notice: You invested $180,000 total but earned $565,180 in interest—3x your contributions! In the last 10 years alone, you added $450,000. That's why 'start early' is the most important advice.
What's the difference between ordinary annuity and annuity due?
Ordinary Annuity: Payments at end of each period (this calculator). Annuity Due: Payments at beginning of each period. For monthly savings, ordinary annuity is standard—you save at end of month after receiving paycheck. Annuity due gives slightly higher result (~1 month extra growth). The difference is small for long-term projections.
How do I stay committed to monthly savings?
Automation is key: (1) Set up automatic transfer on payday. (2) Use separate 'goal' accounts with names ('Retirement', 'House Fund'). (3) Start with amount that doesn't hurt—increase gradually. (4) Check progress quarterly to stay motivated. (5) Celebrate milestones ($10K, $50K, $100K). Our milestone tracker shows when you'll hit major targets—use those as motivation checkpoints!
Should I increase my monthly savings over time?
Yes! Increase with raises—a powerful strategy. If you get 3% annual raise, increase savings by 3% too. You won't notice (same lifestyle) but impact is huge. Example: Start $500/month, increase 3%/year, 8% return, 30 years. Without increases: $745K. With 3% annual increase: $1.1M. That's 47% more! Rule: When income goes up, savings should go up proportionally.
Do I need to account for taxes on my savings growth?
Depends on account type: Tax-advantaged (401k, IRA, Roth): This calculator shows accurate growth—taxes handled at contribution or withdrawal. Taxable brokerage: Reduce projected return by ~1-2% to account for taxes on dividends and gains. For rough planning, use 6-7% 'after-tax' return for taxable accounts vs 8-10% for tax-advantaged. The difference compounds significantly over 30+ years.