Savings plan calculator

What is a savings plan calculator?

A savings plan calculator is a free online tool that helps estimate your future savings based on parameters such as contribution frequency, plan duration, plan type (fixed or growing deposit), and deposit amount, excluding an initial deposit. This approach to financial planning allows users to manage their savings more effectively, tailoring them to short-term or long-term financial goals.

Types of savings plans

Fixed deposit

A fixed deposit involves regularly depositing a set amount into an account with a predictable savings structure. In this case, we assume there is no initial deposit, and all accumulations are formed solely through regular contributions made to the account.

Growing deposit

A growing deposit involves gradually increasing the amount of regular contributions over the accumulation period. These contributions provide the basis for savings growth, allowing for more flexible and effective investing in the future, especially when there is no initial capital provided.

Formula

The savings plan calculator uses formulas that consider only the contribution frequency, duration, and amount without the initial deposit. Here, calculations are based purely on regular additional contributions:

Formula for fixed deposit (without initial amount):

$A = PMT \cdot F \cdot t$

Where:

• $A$ is the total accumulated savings after $t$ years.
• $PMT$ is the regular periodic contribution.
• $F$ is the frequency of contributions per year.
• $t$ is the duration of contributions in years.

Examples

Example 1: Fixed deposit

You decide to set aside 1,000 rubles monthly for 3 years. The formula to use is:

$F = 12$ (monthly):

$A = 1000 \cdot 12 \cdot 3 = 36000$

Example 2: Growing deposit

You start with deposits of 600 rubles monthly, increasing the amount by 100 rubles every six months over 5 years. The example is for simplifying calculations without increasing contributions:

$F = 6$ (twice a year when increased):

In the first stage, calculate for the first half of the first year:

$A_1 = 600 \cdot 6$

In the second stage, calculate for the second half of the first year, and so on:

$A_2 = (600 + 100) \cdot 6 = 700 \cdot 6$

These steps are repeated for all periods, considering the contribution and frequency, to get the final amount.

Notes

• Accuracy of calculations: It’s important to be precise in entering data on regular contributions, as this affects the final result.
• Plan adaptation: It is important to realize that actual results may vary depending on the frequency and amount of doubled contributions.

FAQs

How often should I update my savings plan?

Try to review your plan every six months or when your financial situation changes, to ensure tasks are completed.

Can I use this plan for any deposit accounts?

The calculator is applicable for any type of savings if the frequency and amount of contributions are known without initial capital.

How are interim contributions accounted for?

Without an initial sum, all interim contributions are evaluated according to the planned scheme without accumulation at the start of the period.