Savings Calculator
Calculate how your monthly savings grow into a corpus over time. Set a target, find the required monthly amount, or project your current savings.
| Year | Amount Saved | Returns Earned | Total Value | Growth |
|---|---|---|---|---|
| Year 1 | ₹1,20,000 | +₹6,703 | ₹1,26,703 | |
| Year 2 | ₹2,40,000 | +₹26,673 | ₹2,66,673 | |
| Year 3 | ₹3,60,000 | +₹61,300 | ₹4,21,300 | |
| Year 4 | ₹4,80,000 | +₹1,12,118 | ₹5,92,118 | |
| Year 5 | ₹6,00,000 | +₹1,80,824 | ₹7,80,824 | |
| Year 6 | ₹7,20,000 | +₹2,69,289 | ₹9,89,289 | |
| Year 7 | ₹8,40,000 | +₹3,79,583 | ₹12,19,583 | |
| Year 8 | ₹9,60,000 | +₹5,13,993 | ₹14,73,993 | |
| Year 9 | ₹10,80,000 | +₹6,75,042 | ₹17,55,042 | |
| Year 10 | ₹12,00,000 | +₹8,65,520 | ₹20,65,520 |
How the Savings Calculator Works
This calculator uses the Future Value of an Annuity formula: FV = P × [(1+i)ⁿ – 1] ÷ i × (1+i), where P is monthly savings, i is the monthly rate and n is total months. Each monthly deposit earns compound interest from its date of deposit — so earlier deposits contribute far more to the final corpus than later ones. This is why increasing your savings by even ₹2,000/month in the first year matters more than increasing by ₹5,000/month in year 9.
What Monthly Savings Can Build — Real Numbers
At 12% annual return (equity fund benchmark): ₹5,000/month for 20 years = ₹49.9 lakh (invested ₹12 lakh, returns ₹37.9 lakh). ₹10,000/month for 20 years = ₹99.9 lakh. ₹20,000/month for 20 years = ₹1.99 crore. The relationship is linear with amount but exponential with time — extending from 20 to 25 years adds 65% more corpus on the same ₹10,000/month. Time is the real multiplier in savings. Compare with our SIP Calculator for mutual fund-specific projections.
How Much Should You Save? The 50-30-20 Rule
The 50-30-20 framework is a practical budgeting guide: allocate 50% of take-home salary to essential needs (rent, groceries, utilities), 30% to wants and discretionary spending, and 20% to savings and investments. If you earn ₹60,000/month take-home, that is ₹12,000/month to savings. If 20% feels difficult, start at 10% and increase by 1% every quarter. The consistency matters more than the amount in the early years.
Where to Put Your Savings — Matching Goals to Instruments
Not all savings should go to the same place. Emergency fund (0–6 months): liquid mutual fund or high-yield savings account. Short-term goals (1–3 years): recurring deposit, debt mutual fund or FD — see our FD Calculator. Medium-term goals (3–7 years): hybrid or balanced advantage funds. Long-term wealth building (7+ years): equity funds via SIP. Mixing timelines and instruments is one of the most common — and costly — savings mistakes.
Savings vs Investment — Not the Same Thing
Savings typically refers to low-risk, liquid money — bank accounts, FDs, PPF. Investment refers to deploying money in assets that may earn higher returns with some risk — equities, real estate, mutual funds. Both are necessary. Savings gives you safety and liquidity; investment grows real wealth over time. The mistake is keeping too much in savings (losing to inflation) or investing money you may need soon (forced selling at losses). Build your retirement corpus using our Retirement Calculator to see the exact monthly savings required.
✓Verified by ToollyX Team · Last updated June 2026
Frequently Asked Questions
Disclaimer: Results are indicative estimates based on a constant annual return rate. Actual investment returns are market-linked and may vary. This calculator is for educational planning purposes only.