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Savings Calculator

Calculate how much money you will save over time based on your initial deposit,
monthly savings contribution, and interest rate.

$

$

YEARS

%

$0 at the end of 2030

$0.00 at the end of 2030

$0.00 at the end of 2030

$0

Earn 1.20% with OnJuno Metal

Create a free FDIC-Insured checking account
in less than 5 mins and start saving today

1.20% Bonus Rate Checking Account

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Send money internationally

rewards

Make Your Wishlist Come True

Based on your monthly contributions of $100, we calculated
how long it would take for you to buy these things.

Rolex
Tesla
Trip
Yacht
Burj Khalifa

Rolex Daytona

16 years 8 months

$20,000

Tesla Cybertruck

50 years 0 months

$60,000

Virgin Galactic Trip

208 years 4 months

$250,000

Dominator Yacht

625 years 0 months

$750,000

Burj Khalifa Apartment

833 years 4 months

$1,000,000

Tired of Zero Returns?

With a starting deposit of $10,000, OnJuno will grow your savings more than 10x faster than traditional accounts.

NUMBER OF YEARS

5 years

OnJuno Returns

$10,614 in 5 years

$10,020

$10,045

$10,614

0.04%

Avg. Checking Account

0.09%

Avg. Savings Account

1.2%

OnJuno Checking

*Based on average savings account rates of 0.09% APY and average interest checking account rates of 0.04% (Value Penguin)

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Get 5% Cashback on 5 Brands of Your Choice

OnJuno Debit Card rewards you like a credit card without the high fees and debt

How To Use a Savings Calculator

When most people hear the word ‘savings’ or ‘budget’, they cringe. Thoughts of ‘No Fun Ever’ and saving every penny, cutting out every expense that brings them joy — basically living like a miser. But that’s not it at all! A savings plan simply tells your money where to go so you don’t wonder where it all went . Your savings can then maximize its potential while leaving space for spending on what is most important to you.

A great place to start on your savings journey is to use a simple savings calculator. A savings calculator is a useful tool to calculate how much money you will make over time based on your initial deposit, monthly savings contribution, and APY (also referred to as interest rate). Let’s dig in to what each of these terms mean.

Savings Calculator: What is an initial deposit?

An initial deposit can mean two things. In the savings calculator context, it is simply the amount of money you start off with. It’s the first step.

In the banking context, an initial deposit is the money you deposit into your bank, credit union, or other financial institution to open a savings account. It’s even possible your bank will charge a fee to open the account. You also may be required to deposit a fixed amount or maintain a minimum daily balance to avoid paying fees.

If possible, you want to avoid these fees to maximize your savings. Even a small deduction every month can add up over time.

Savings Calculator: What is a monthly savings contribution?

Monthly savings contributions are deposits you make into your savings or checking account every month to reach your goal(s). You can make as many or as few contributions as you’d like, but the higher your balance, the more interest your money will earn.

If you make periodic withdrawals from your savings, making monthly contributions will save you from paying a fee if your account falls below your fixed minimum balance.

Savings Calculator: What is a savings goal? How long should you save for?

Your savings goal can be whatever you want to save up for. Think of it as the blue ribbon at the end of a race. It can be a home, a new car, or an emergency fund for those unexpected surprises. Setting a savings goal will help you stay on task and ensure you actually put money into your account.

How long you save depends on your goals, the amount of your initial deposit, and how much money you’re able to contribute to your savings account each month. For instance, if you’re saving for retirement, decide at what age you might be able to retire and set a savings goal for that date.

Savings Calculator: What is APY? What does APY mean?

APY stands for Annual Percentage Yield. APY is the real rate of return on your savings, taking into account compounding interest. Unlike simple interest that is paid on your original principal only, compounding interest is calculated periodically–daily, monthly, quarterly or yearly–and allows you to earn interest on your principal and the interest you’ve already earned.

Because APY is variable on savings accounts, it can rise or fall based on market conditions.

Savings Calculator: How is interest earned on a savings account? Daily, Monthly, or Annually?

For most savings accounts, interest is compounded daily, monthly, or quarterly-sometimes yearly, but that’s rare. The more interest that is added to your balance, the faster your savings grows, even if the amount is too small to seem important. But, at the end of ten years, even a small amount can really add up.

Savings Calculator FAQ: What is the meaning of 2% APY?

Interest is always represented as a percent in your savings account. So, 2% APY means that you will earn 2% interest on the money you deposit into your savings account.

For example, let’s say your savings account offers 2% APY. To figure out how much you’ll get each month, divide 3% by 12 (12 months in a year). So, 3% divided by 12 = .25% — the monthly interest rate.

Savings Calculator FAQ: How much interest will I get on $1000 a year in a savings account?

This is dependent on the APY your bank account offers. With a high yield account like OnJuno, you can earn up to 1.20%, which would earn you $12.00 in a year. With regular accounts that offer between 0.01% to 0.04% interest, you will earn next to nothing — between 1 and 4 cents.

Low interest rates on deposits is a leading cause for people to close their traditional bank accounts and move to digital banks and services.

What is simple interest?

Simple interest is paid on the original deposit only of your savings account. Unlike compounded interest, simple interest does not compound. That means you will only earn interest on the principal.

You calculate simple interest this way — Your original deposit x the annual interest rate x your term.

Let’s say you deposit $1,000 in your savings account and your account earns 5% interest per year. At the end of the year, you’d earn $50 in interest.

What is compound interest?

Compound interest is calculated on the initial deposit, plus all accumulated interest. Think of it as earning interest on interest. Your money grows at a faster rate with compounded interest than with simple interest, because you not only earn interest on your principal, but you earn interest on the interest you’ve already earned.

For example. You made that same $1,000 deposit into your savings account. Your account still earns 5% interest annually. After the first year, you’ll earn $50. But with compounding interest, in year two, you’ll earn 5% on 1,050, which is $52.50, for a new balance of $1,102.50.

Simple vs Compound Interest: Similarities and Differences

Simple interest and compound interest will grow your money. Simple interest is generally easier to compute as it is calculated only on the principal you’ve invested in your savings account. Compound interest is calculated on your principal and the interest you’ve already earned.

Short-term accounts usually use simple interest, whereas compound interest is typically used on long-term savings accounts. Simple interest is constant. Compound interest, on the other hand, adds up much faster as its growth is exponential.

How can I start saving money?

A savings plan is simply accounting for your money in minus your money out, with a place for it all to go. Here’s how to start yours.

Step 1: Add up your net income. Net income is your aftertax, takehome pay. If you work one traditional job with a steady static income, this is as easy as adding up your direct deposits. If you have passive income streams, estimate your monthly earnings and add it to your net income.

Step 2: Track your spending. This is a little bit more complex and a lot more eye-opening. Tally up your spending for the past few months and make it a habit moving forward. You can look over your bank account transactions and Venmo statements to do a little forensic accounting work. Even if the spending was out of character or a one-time thing, it still counts. Note which expenses were needs versus wants.

Step 3: Choose a savings method. Savings and budgeting isn’t a one-size-fits-all financial solution. Personal style definitely comes into play, and luckily, there’s an option out there for you — be it money saving challenges, non-financial ways to save money, or even the classic budgeting techniques.

Short-term accounts usually use simple interest, whereas compound interest is typically used on long-term savings accounts. Simple interest is constant. Compound interest, on the other hand, adds up much faster as its growth is exponential.

5 different savings plans you can use today

1. Traditional Budget: This is the regular old budget that springs to mind: Income less expenses equals savings. While this is the cornerstone of all budgeting, it’s an oversimplified approach for most of us. To use this budgeting method, you need to make your lists, check them twice, deduct the difference, and plan for the excess…or how you’re going to make up for the deficit. This works best for people who are brand new to budgeting and don’t know where to start. It’s not so great for people with complicated incomes or more creative thinkers.

2. 50/30/20 Plan: Harvard bankruptcy expert and Senator Elizabeth Warren popularized the 50/20/30 budgeting style in her book All Your Worth: The Ultimate Lifetime Money Plan. The 50/30/20 budgeting method is pretty straightforward: allocate your spending so that 50% is spent on needs, 30% on wants, and 20% on saving and investing. For this method to work best, you need to have a clear idea of how to divide your spending into wants and needs, which we will cover in a bit. This method is great for people who wish to simplify their lives without too much effort. Bucketing your funds into three distinct spending categories is just about as simple as it gets.

3. 80/20 Plan: The 80/20 budgeting option is even more simple than the 50/30/20. With this method, just send 20% of your income to saving and investing and spend the rest how you please. The power of this budget is that you pay yourself first by saving and investing, then use the rest for your day-to-day expenses. The 80/20 Budget works well for people who make more money than they spend and need to remind themselves to prioritize their future.

4. Zero-Balance Plan: The Zero-Balance budgeting method was popularized by financial expert Dave Ramsey. This method requires you to assign every dollar you earn a purpose. At the end of the month, every one of your dollars earned would be spent on housing, food, savings, gifts, etc — with nothing left over. For this method to work best, you either need a very steady and predictable income or one that you’ll be able to anticipate in advance. A Zero-Balance budget is the one to use if you’re very Type A and like to cross things off your list.

5. Envelope Plan: The Envelope Budget method is pretty much the same as a Zero-Balance budget, but with one old fashioned twist: it’s cash only. Using this method, you would assign a spending category to your entire income and divide it up. Things like your rent or mortgage will come from your bank account, and the rest will be spent using cash. So for example, if you have $100 budgeted for groceries this month, every time you hit the shop you pay with cash from the “groceries” envelope. (Oh yeah, leave your debit and credit cards at home) This super simple method will whip you into shape, fast. This is best meant for someone who needs to control their spending through drastic means.

Becoming a savings pro: Categorizing your needs versus your wants

When you looked over your spending, you may have noticed some trends in how you were using your money. Every expense can be assigned into one of two categories: Needs and wants. These are highly subjective and will be different for each person. Needs are those bills that you unquestionably, absolutely must pay. These are the things that are necessary for your survival and are most likely fixed costs. These include rent or mortgage payments, groceries, health care, minimum debt payments, and utilities. For some, these bills may include child care, car payments, prescription medicines, or HOA fees. For others, it will be pet care, religious tithing, or commitments to helping out a family member.

If you’re having trouble putting something into a category, think of it this way: Would your life be worse off without it? Groceries are a need, Coachella tickets are not. FOMO isn’t an excuse to get into debt.

What is the best time to start saving?

Today! Your savings plan is a living document that will constantly evolve to match your income, your expenses, and more importantly — your priorities. Remain realistic, evaluate often, and don’t be afraid to readjust. Budgeting isn’t just about balancing your income, it’s about putting you on even footing for the future.

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Banking services provided by Evolve Bank & Trust; Member FDIC.
OnJuno is a financial technology company, not a bank.

OnJuno (CapitalJ Inc.) is a financial technology company, not a bank. Banking services provided by Evolve Bank and Trust, Members FDIC. The OnJuno card is issued by Evolve Bank and Trust, Member FDIC, pursuant to license by Mastercard International.

© Copyright 2021 OnJuno by CapitalJ, Inc