How savings account calculator works
Because savings account calculator works in different ways, first let’s focus on the most basic use – let’s say we are saving for our dream bike:
- Find out the price of the bike. Let’s say it is
2000 € – and this is our final balance that we want to achieve.
- Determine your initial deposit. Let’s make it
- Find out the interest rate. Let’s use
- Last but not least, decide when do you want to finish saving. Let’s say we are not in hurry and make it
- By entering these data in our calculator, you will calculate that you only have to deposit
26.76 €monthly to buy that bike in 2 years. Congratulations!
The other way to use savings account calculator is to find out what initial deposit you need to place once we know how much we can deposit monthly:
- Determine the final balance. Let’s make it
- Find out monthly balance. Let’s say we can deposit
120 € monthly.
- Find out term. Let’s say
9 months is the deadline.
- Finally, enter the interest rate. Let’s use
- By entering these data you will find out that you will need to place a
1797.84 € initial deposit.