Exceltemplates.org – We save money as preparation for the future. Since we do not know what will happen in the future, it would be best if we have more saving to be used in emergency. On different circumstance, saving is also useful as preparation for plan in the future. For instance, you plan to buy vacation house in the next ten years or you prepare money for your children future education. Saving is also important for retirement preparation. When we do not have more strength to make money, at least we already prepare money to be spent so we will not become a burden to anybody.
Saving could grow as the time passed if you add principal to your saving and due to the interest. If you have a long-term plan, it would be nice if you know how much the saving would be after you save in one year period, ten years, 20 years, or even more years to come. In order to save your time and make it easier calculation, you can use this Saving Calculator.
The Excel calculator makes it possible for you to simulate your saving at bank in different scenarios. If you want to do a different calculation of your own, you can see the built-in function in the spreadsheet and then calculate yourself.
To use Saving Calculator, you only need to fill the cells of current saving, the intended monthly/annual savings, interest rate per year, and saving period. After you finish the filling, the calculator will automatically calculate it and give you information about your future saving value, including total principal and total interest. The calculator is made in two scenarios. The first is if you make monthly savings and the second is yearly savings.
The function used on this calculator is future value built-in function with FV(rate, nper, pmt, pv, type). “rate” is the interest rate of the saving,”nper” is the period of the saving, “pmt” is the amount of regular deposit to the saving, “pv” is the current amount of the saving, and “type” is the date when the saving is made.
The calculation result could also be used as side reference when you want to open new saving account. You can also use it for comparison with other investment type so you can make a better plan for your future. You can plan how much to be put on your saving and whether you had better make it monthly deposit or yearly deposit.
When you see the result, you may realize that saving will only give you small grow because the interest is low. However, saving is very low risk so you need to have it as a safer option for your future. Therefore, spend some money on your saving and you can use the rest for other investments.
Since bank may have different interest calculation, the result of this Saving Calculator may different from reality. For example, the bank may only calculate interest after you reach some minimum deposit amount. This calculator only gives you rough calculation as your side reference only.