Recurring Savings Calculator
What will your monthly savings
be worth at maturity?
Estimate after-tax maturity value from equal monthly deposits using simple or monthly compound interest.
SAVINGS MATURITY SCENARIOS
Compare after-tax maturity value
by monthly deposit and term.
These examples assume equal monthly deposits, 3.5% simple interest, and no tax deduction.
Deposits are made at different times, so each deposit earns interest for a different period. The annual rate is not applied to every deposit for the full term.
By monthly deposit
1 year · 3.5% annual rate · simple interest · no tax deducted
- Monthly deposit
- $100
- Total deposits
- $1,200
- Pre-tax interest
- $23
- Tax
- $0
- After-tax interest
- $23
- Maturity value
- $1,223
- Monthly deposit
- $300
- Total deposits
- $3,600
- Pre-tax interest
- $68
- Tax
- $0
- After-tax interest
- $68
- Maturity value
- $3,668
- Monthly deposit
- $500
- Total deposits
- $6,000
- Pre-tax interest
- $114
- Tax
- $0
- After-tax interest
- $114
- Maturity value
- $6,114
- Monthly deposit
- $1,000
- Total deposits
- $12,000
- Pre-tax interest
- $228
- Tax
- $0
- After-tax interest
- $228
- Maturity value
- $12,228
By savings term
Monthly deposit $500 · 3.5% annual rate · simple interest · no tax deducted
- Term
- 1 years
- Total deposits
- $6,000
- Pre-tax interest
- $114
- Tax
- $0
- After-tax interest
- $114
- Maturity value
- $6,114
- Term
- 2 years
- Total deposits
- $12,000
- Pre-tax interest
- $438
- Tax
- $0
- After-tax interest
- $438
- Maturity value
- $12,438
- Term
- 3 years
- Total deposits
- $18,000
- Pre-tax interest
- $971
- Tax
- $0
- After-tax interest
- $971
- Maturity value
- $18,971
How it works
Deposit timing and tax
are calculated separately.
01Why is the return lower than the annual rate?
Principal is added month by month. The first deposit earns interest the longest and the final deposit the shortest.
Simple vs. monthly compound
Simple interest applies only to principal. Monthly compounding includes previously earned interest in later calculations.
What is not included?
Early-withdrawal rates, government contributions, variable rates, and irregular deposits are excluded.
Saving $500 monthly for one year at 3.5%
This example uses equal monthly deposits, simple interest, and no tax deduction.
- Total deposits
- $6,000
- Estimated interest
- $114
- Estimated maturity value
- $6,114
The annual rate is not applied to every deposit for the full term. Each monthly deposit earns interest for a different length of time.
Frequently asked questions
Why is interest less than 3.5% of total deposits?
Only the first deposit earns interest for nearly the full year. The final deposit is held for roughly one month.
Does every recurring savings product compound monthly?
No. Select monthly compounding only when the product terms explicitly state that method.
Can the institution's maturity value be different?
Yes. Daily accrual, deposit dates, rounding, bonus-rate conditions, tax treatment, and product terms can change the result.
!
Please check the entered values.
