## How Long Will it Take to Save _ Dollars?

 This calculator will compute how long it will take you to reach your desired savings goal, based on three factors: the amount you currently have set aside, the amount you can add to your savings each month and the annual interest rate you expect to earn. To calculate the how long it will take to reach your savings goal, enter the beginning balance, your savings goal, the monthly dollar amount you plan to deposit and the interest rate you expect to earn, then click the "compute" button. Note that this calculator is based on monthly compounding. Enter the amount you currently have set aside: Enter the amount you want to accumulate (goal): Enter the monthly addition: Enter the annual interest rate: # of months until goal is met: # of years until goal is met:

## Compounding Interest Made Easy

### How to Save for a Future Expense Using Deposit Growth

If, for instance, you were to decide that a few years from now you wanted to make a large purchase such as a luxury exotic vacation in Europe, you might start by putting away a relatively small sum of \$500 in an investment savings account. You would have the option to set up an automated monthly recurring contribution. This is the percentage of your income you feel comfortable putting towards your future savings goal each month out of your paycheck. If you decided to contribute just \$100 per month, with a goal of saving a total of \$5000 before you go on your trip, it would take just 42 months (or 3.5 years) to meet your savings goal. This scenario takes into account an interest rate of 3.5%. This simple calculation shows that it is feasible for consumers to put small stores of money away and gradually transform them into significant savings.

### The Time Calculator

Using the calculator which estimates the amount of time it will take you to reach a particular financial goal within the specific range of current funding and annual percentage interest rate that you have found, it is easy to set reachable achievements and accomplish them within a predictable time frame. When you contribute small amounts regularly to an initial deposit, the money that is being taken out of your monthly paycheck usually won't seem like more than a drop in the bucket. But the end result is generally a plump figure that savers won't believe is really their own.

Thus is the magic of small deposit and big growth. While you have ignored and forgotten about that lump sum in a separate account, and neglected to look at your bank statements which show a certain savings amount being withdrawn each month, your money is piling up and gathering interest to help you meet your goals.