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Enter a "0" (zero) for one unknown value above.

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Saving a Dollar a Day Calculator

Let's show off the flexibility of this calculator and have some fun while we are at it. (This is particularly fun to do with kids.) How much do you think you'll have if you save just a dollar a day for forty years - a working lifetime? What will be the gain on the savings? That is, how much of the final value will be from the daily dollar saved and how much will be from investment gain?

What do you think?

To try the dollar-a-day calculation, set the calculator this way. (Of course, set the dates as needed and change the interest rate to suite.)

	Savings on Hand (PV) (can be 0):    $0.00

	Periodic Savings Amount?:           $1.00

	Number of Periods to Save? (#):    14,600

	Annual Interest Rate?:               4.5%

	Goal Amount (future value)?:        $0.00

	Today's Date?:                 09/01/2019
	First Deposit Date?:           09/01/2019

	Deposit/Investment Frequency?:      Daily
	Compounding?:                       Daily

Note, I selected 4.5% as the interest rate, not that you will earn that on a bank's savings account. But it's about halfway between the rate-of-return on 10-year US treasury bonds and the average return for the US stock market.

I'll leave it to the reader to do the calculation.

But the interest earned from daily compounding is almost twice the amount the user invested!

This savings plan calculator provides the user with enough flexibility that you should be able to test just about any savings plan. You should find it relatively simple to answer the question, "how will my savings grow?"

7 Comments on “Savings Calculator”

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