Everyone knows they should be saving money, but that’s often where the advice ends. Questions that remain for many of us: how long should I be saving? What am I saving for? And how can I save faster and better?

Your financial goals are unique to you. You could be saving for a new car, a dream home, your child’s education, or that inevitable rainy day. Whatever your goals are, a savings calculator can help you decipher the what, the how and the why.

What is a savings calculator?

A savings calculator is a simple tool that helps you to understand how your money can grow over time. This is achieved by showing you the profit that your savings can potentially earn, which will bring you closer to your financial goals.

How can I use a savings calculator?

Most savings calculators will ask for some numbers to calculate a projection. All you need to do is input your starting balance, or how much you’ve already saved, the monthly contributions you intend to make, and how long you expect to be making these deposits – usually a period of months or years.

You can then input the annual interest rate your bank or investment scheme is offering. This is the yield or profit you expect to earn on your invested money.

Hit calculate, and the end balance displayed is a close estimation of how you will have grown your wealth in your preferred time frame.

What are the benefits?

The benefits of a savings calculator include:

• Understanding the impact of making regular contributions.

Getting in the habit of depositing an amount regularly makes good financial sense. As soon as this money hits your account, no matter the amount, it begins to accumulate interest.

• Motivation to save more.

There’s no better motivation than the projection of an impressive end balance. Your hard work will pay off over time and keeping an eye on that end balance will motivate you to stay on track with regular contributions towards your savings account.

• You’ll get the best deal.

If you’re not sure how much of an impact the interest rate will be on your savings, you can use the savings calculator to do the hard work for you. Use it to compare rates from different banks and investment schemes to find out how they can improve your future.

Where will I find a free savings calculator?

There are many savings calculators out there, but some are easier to use than others.

• The Calculator Site has a version that takes into account not only deposits but understands withdrawals might occur from time to time. It also has multiple currency options.
• The Savings Calculator by  National Bonds gives you options so you can choose whether to calculate your end balance, find out how long it will take to reach your financial goal, and how much you need to save every month to achieve it.