A monthly Saving Calculator is an investment tool used to calculate the future value of periodic savings over a fixed period for achieving the goal.
It is a general-purpose saving calculator, which requires some data like – Your Monthly Deposit Amount, Rate of Interest of your bank, Period (in No. of Months), interest Compounding Frequency. After calculation, you will get the Maturity Amount after a specified period and Effective yield in %.
Saving Calculator Variables:
This saving calculator uses five different investment variables that most of the calculator requires. These saving calculator variables are:
Monthly Deposit Amount: This is a fixed monthly amount that is invested in a saving scheme. This deposit amount varies from person to person and scheme to scheme.
Rate of Interest: The Rate of Interest is the variable of the saving calculator that appears as a percentage and is different for different types of saving options. Different banks or financial institutions offer different rates of interest based on amount of investment and period of investment. This saving variable matters the most to the investors.
Period of Investment: The length of the investment or period for the investment in months is another factor that plays a major role in the saving calculator. The longer investment increases the compounding of the returns and hence greater rewards are generated.
Maturity Amount: The desired or required amount that an investor wants at the end of the investment life cycle is known as the final amount or maturity amount.
Effective yield: The effective yield is that variable of the saving calculator that appears as a percentage and is used to compare the effectiveness of different types of saving options. This saving variable matters the most to the investors.
What is saving?
Savings are generally funds that you set aside from expenditure to meet your future needs. The needs may be short or long term. Saving is for generally short term needs. An important feature of savings is that these can be accessed relatively quickly. The most universal way of saving is to place surplus money into a bank account (‘savings’ account), where the money is available to you on demand.
How Saving Calculator Works?
Anyone can calculate his saving returns through an online saving calculator available on this page with high accuracy.
Following are the steps to calculate the saving returns through this calculator:
- Step 1: Enter the fixed monthly amount that he wants to deposit every month.
- Step 2: After this, fill the rate of interest that he gets from his bank or financial institution for the specified period. Different banks or financial institutions offer different rates of interest based on amount of investment and period of investment.
- Step 3: The next step that one has to follow is to select the period for saving in months. It depends on saving option requirement for which he wants to stay invested.
- Step 4: Thereafter choose the frequency of compounding. The frequency of compounding may be monthly, quarterly, half-yearly or yearly.
- Step 5: After submitting the all variables required by the saving calculator, one will get the final maturity amount for investment query with effective yield.
(Calculate your saving maturity amount by using this Saving Calculator)