Savings rate calculator

The compound interest calculator helps you work out:

  • How much to save each month based on your after-tax income
  • What a change in savings rate can do to your returns
  • The difference that saving more money makes as opposed the return rate of your investment
  • Calculate compound interest over time
Investment Calculator
Annual Income (After Tax)
Savings Rate (%)
Investment Return (%)
Monthly Savings
After 10 Years
After 15 Years
After 20 Years

This calculator estimates your future savings based on the annual income you keep after tax, your savings rate, and expected investment returns. We assume your income will increase by 2% each year and that your investments will compound annually. Keep in mind, these numbers are just estimates and it's always wise to consult a financial advisor for personalized advice.

Surprisingly you may find that doubling up your savings rate would lead to better outcomes than doubling up your investment returns over 10, 15 and 20 years.

How does savings rate affect investment?

Your savings rate can impact your ability to invest over time. When you save more money, you have more available to invest. This can lead to more investment opportunities and potentially higher returns on your investments. On the other hand, a low savings rate may limit your ability to invest or achieve your financial goals.

If you're not saving enough money, you may have to rely on credit or loans to finance your investments or achieve your financial goals, which can lead to higher debt and interest payments over time.

What is a good ratio of savings to investments?

There is no one-size-fits-all answer to what is a good ratio of savings to investments. It ultimately depends on your individual financial goals, circumstances, and risk tolerance. However, a general rule of thumb is to save at least 10% of your income and invest the rest.

Is 7% a good return on investments?

When you invest your money, a 7% return is considered good over a long time like many years. But what is good for you depends on what you want to do with your money and how much risk you are willing to take. If you are young and have a lot of time to invest, you may want to take more risks for the chance of earning higher returns.

If you are older or want to be more careful with your money, you may want to choose less risky investments with lower but more stable returns (like cash in the bank). The important thing is to think about what you want to do with your money and choose investments that fit your goals and risk level.