Question 1

How is the future balance calculated?

Accepted Answer

The calculator uses the principles of compound interest. It takes your starting balance, adds your regular deposits, and applies the annual interest rate over the duration you specify to project the final balance.

Question 2

What is inflation and how does it affect my savings?

Accepted Answer

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. If the interest rate on your savings is lower than the inflation rate, the real value (what you can buy with your money) of your savings will decrease over time, even though the amount is growing. This calculator includes an optional inflation adjustment to show you the 'real' value of your savings in today's money.

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