Savings Account Calculator

See how a savings balance grows with monthly deposits at a given APY, how much of it is interest, what taxes take, and how long a savings goal takes to reach.

Enter what you have, what you add each month, and your account's APY. The calculator compounds monthly, splits the result into your deposits and the interest the bank paid, and shows the year-by-year path. Add a goal and it tells you the month you reach it.

Current balance

Monthly deposit

APY

High-yield online accounts pay 4-5%; the national average for traditional savings is under 0.5%.

Years

Savings goal (optional)

Marginal tax rate on interest

Savings interest is taxed as ordinary income. Enter 0 to ignore.

How the math works

APY already includes compounding, so the calculator converts it to a monthly rate ((1 + APY)^(1/12) - 1) and applies it each month before adding your deposit. That is how most banks credit interest. The first-year interest line is a closed-form check on the simulation.

What changes the answer most

The rate, by far. $250 a month for five years earns about $1,600 of interest at 4% APY and under $200 at 0.4%. Moving cash from a traditional big-bank savings account to a high-yield online account is the single largest improvement most savers can make, and it takes ten minutes.

Taxes

Interest is ordinary income: the bank sends a 1099-INT above $10. The after-tax figure uses the marginal rate you enter; it does not model state tax.

Frequently asked

How much interest does $10,000 earn in a savings account?

About $400 a year at 4% APY, or roughly $40 at 0.4%. Rates change; check the current APY on the account.

Is savings account interest compounded daily or monthly?

It varies by bank, but APY already accounts for the compounding schedule, so two accounts with the same APY pay the same over a year.

Do I pay taxes on savings interest?

Yes. It is taxed as ordinary income at your marginal federal rate, plus state income tax where applicable.