Savings accounts, even a basic one, are a powerful tool you can use to achieve your financial goals. Sometimes you want to know what you can save over time, and for this, you need a simple savings calculator.
Calculate Your Savings
Find out what you can save over time with our savings calculator. Tell us how much you want to save, and we’ll help you estimate the time it will take to meet your goal.
Note: this calculator is for independent use. Do not rely on it for investment advice. If you need advice, please contact us directly to speak to a qualified professional.
How Can You Use This Calculator?
Simply enter all the information it needs, and you’ll instantly see the estimates. Here is how it works:
Step 1: Provide the required details
Enter the following information:
Starting balance: Your initial deposit
Deposit amount: The amount you wish to contribute for each regularly scheduled deposit.
Deposit frequency: How often you wish to deposit this amount (annually, monthly, semi-monthly, bi-weekly, weekly).
Years to save: The number of years that you will make regular deposits into your savings account.
Interest rate: The annual interest rate you expect to earn on your deposits.
Step 2: Calculate
The calculator takes the details and estimates your expected savings total at the end of the specified period. And the interesting part is that you can choose how to read the output: by graph or schedule.
The graph plots the maximum balance at the end of each year. You can easily see the visual representation of how your savings grow. The schedule, on the other hand, breaks down the status of your account at the end of each period. For example, after the first year, you’ll see the deposit amount, interest earned, and balance.
How to Compare Your Savings Account Options
The calculator helps give you an idea of what your savings strategy can achieve. But it can do more. For instance, you can use this tool to compare multiple account types, like between a regular savings account and a TFSA Savings Account. You can also test different deposit amounts to see how much you can contribute without going over your TFSA limit. For instance, if you start at $0 and contribute $83 per month for five years, your total contributions would be $4,980, and the calculator will estimate the interest you’d earn over that period for each option..
In short, the calculator helps with due diligence. It allows you to approach your savings plans with a clear mind. Most importantly, it helps you clarify your goals and understand your savings potential.
Use the Calculator to Understand Your Savings Potential
If anything, the previous example shows that the savings calculator doesn’t just throw numbers at you. It helps you evaluate the practicality of your saving goals. But that also means that you must provide realistic inputs to get a clear picture of whether your goals align with your resources. The tool factors in compounding interest, regular deposits, and time frame. Compounding interest means you earn interest on both your original balance and the interest you’ve already earned, so your savings can grow faster over time.
Perhaps most importantly, the calculator helps you understand trade-offs. You can see exactly how extending your investment timeline reduces the monthly deposit needed.
How to Achieve Your Savings Goals
Say you want to save emergency funds or put together a down payment for a home. You’ll need to define exactly what you’re saving for and then use the calculator for projections.
Use the calculator to work backwards and forward with different scenarios. If the required monthly deposit seems too high for your budget, extend the period and see what happens. If you want a shorter timeline, experiment with higher deposit amounts or seek out savings accounts with better interest rates. The calculator shows you exactly how these adjustments affect the outcome.
Pro tip: Set up automatic transfers from your No-Fee Bank Account so deposits happen consistently without you having to think about them.
Savings Calculator FAQs
How accurate are the results from this savings calculator?
The calculator, like all financial calculators, only provides estimates. Their reliability depends on your inputs. Still, actual earnings may vary due to your earnings being taxed or any over-limit transaction fees you may incur.
How do taxes affect my savings growth?
The government may tax the interest you earn in a basic savings account, which can reduce your overall growth. That is why you have options like a tax-free savings account (TFSA) – for tax-free investment growth – and an RRSP (for tax-free income when you retire).
What types of savings accounts can I open with Innovation?
TFSA Savings Account
How do I pick the best savings plan?
Begin by considering your goals and when you'll need your funds. Since all our accounts and investments are guaranteed, focus on differences like tax treatment. Savings account interest is generally taxable, while TFSA earnings aren’t. Then compare interest rates, minimum balances, fees, and any limits.