How to Use the Savings Calculator

Here’s a step-by-step guide to using the savings calculator I provided:

Step 1: Enter Your Details

1. Initial Amount (₹)

• Enter the lump sum amount you’re starting with (if any)
• Example: If you have ₹50,000 to invest initially, enter “50000”

1. Monthly Contribution (₹)

• Enter how much you’ll save each month
• Example: If you plan to save ₹5,000 every month, enter “5000”

1. Annual Interest Rate (%)

• Enter the expected annual return rate on your savings
• Example: For a 7% return, enter “7” (don’t add the % sign)

1. Number of Years

• Enter how many years you plan to keep saving
• Example: For a 10-year plan, enter “10”

Step 2: Calculate

• Click the green “Calculate Savings” button
• The results will appear below the button

Step 3: Understand Your Results

The calculator shows three important numbers:

1. Future Value

• The total amount you’ll have at the end of your savings period
• This includes your contributions plus all compounded interest

1. Total Contributions

• The total amount you actually deposited over time
• (Initial amount + all monthly contributions)

1. Interest Earned

• How much extra money you made from interest
• This shows the power of compounding

Example Scenario

If you enter:

• Initial Amount: ₹50,000
• Monthly Contribution: ₹5,000
• Annual Interest Rate: 7%
• Years: 10

You’ll see results like:

• Future Value: ₹9,12,000 (approximately)
• Total Contributions: ₹6,50,000
• Interest Earned: ₹2,62,000

This shows how your money grows over time with compound interest!

Tips for Best Use

1. Try different interest rates to see how small changes affect your savings
2. Experiment with increasing your monthly contribution to see the impact
3. Use it to set realistic savings goals
4. The calculator assumes your interest rate stays constant (real returns may vary)