Savings Interest Calculator

This calculator compounds interest monthly on your initial deposit plus any ongoing monthly deposits, similar to a typical high-yield savings account or CD. What sets it apart from a plain compound interest projection is the optional tax rate: interest earned in a regular taxable savings account is generally taxed as ordinary income in the year it's earned, unlike growth inside a tax-advantaged retirement account, so this calculator applies your tax rate to the interest earned each year and reduces the balance accordingly before it continues compounding.

The 'net interest after tax' figure is the more realistic number for comparing a taxable savings account to tax-advantaged alternatives, since the advertised interest rate on a savings account is always pre-tax. If you're deciding between a taxable savings account and something like a Roth IRA for money you don't need immediate access to, comparing after-tax outcomes gives a fairer picture.