Use this easy calculator to estimate the monthly payments on your personal loan. Simply enter the amount you plan to borrow, the interest rate and the term of the loan. If there are any loan fees, you can enter that amount as well. Click calculate to get an estimated monthly payment.
Using a Future Value Of Savings Calculator
It wasn’t really that long ago that workers felt confident about their ability to retire in comfort thanks to company pensions and social security payments. These days, longer life expectancy and flagging social security funds have made the average adult understandably concerned about the prospect of retiring at 65 and having enough money to live comfortably throughout their twilight years.
Even more pressing is the ability to handle unexpected calamities. Do you have a rainy-day fund in place should your car break down or if you or a spouse experiences an injury or illness that temporarily impacts the ability to earn and support the household? Retirement funds and investment portfolios are obviously necessary these days, but you also need to set aside some money each month to build up a savings that could act as an emergency fund in a pinch.
How can you do this when you’ve already got a pretty tight budget in place? You first have to understand that every little bit counts. From there, you can use a savings goal calculator to help you come up with a workable plan for socking away a personal petty cash reserve. What is a savings goal calculator and how does it work?
How to Use a Future Value of Investing Calculator
Once you come to the conclusion that you need to start saving money, you’ll probably be excited to get started and see your nest egg grow. That said, you need some sense of direction to keep you on track, such as a savings goal.
Future Value Of Your Monthly Savings
A savings calculator can help you create manageable goals that work with your budget. The process starts by understanding the information you’ll have to input, including:
- Starting balance
- Monthly deposit
- Annual interest rate
- Number of years
You might start with $200 in the bank or $2,000, and this will naturally have an impact on how quickly you’re able to reach your savings goals, as will the amount you contribute to the account each month. From there you need to input the interest you expect to earn on the account so that the calculator can factor in accrued (and hopefully compound) interest as your money grows. You can also include the number of years you plan to contribute to the account to see what amount you’ll end up with.
Suppose you’re able to start with $2,000 in your savings and you can afford to pay in $100 a month. If you’re lucky, you’ll find a savings account with an interest rate of 1.0% (often, it’s less). If you pay in for 10 years, you’ll end up with $14,825.24. Keep in mind that even with zero interest, you’d still have $14,000 at the end of 10 years. In other words, you might want to check out alternative savings methods that offer higher interest rates, and perhaps contribute more funds each month, as well.
Benefits of Using a Future Value of Savings Calculator
There’s no denying the convenience of using a calculator specifically designed to help you determine the best way to reach your savings goals. You can quickly and easily change inputs until you get the perfect formula, helping you figure out the best way to build up your savings without busting your budget in the process