How to Calculate Accumulated Savings

Step-by-Step Guide

1. 1

   Step 1: Launch your preferred spreadsheet.

   This could be Microsoft Excel, Zoho Sheets, Google Docs Sheet or another spreadsheet application.
   
   Create labels for the variables relating to your account in cells A1 down through A5 as follows:
   Balance, Interest Rate, Periods, Additional Deposits and Future Value. , Enter these numbers in cells from B1 down through B4.
   
   This includes your current balance, interest rate earned, number of months, and any additional deposits you plan to make over time.
   
   Make sure you know the compound period of your interest rate — not all interest is compounded on a monthly basis and this number will make a difference on the outcome.
   
   The compounding period could be yearly, monthly, quarterly — check with your financial institution to find out the period.
   
   If the compound period is once a month, then you will divide your annual interest rate by 12 to arrive at a monthly interest rate.
   
   You will want to enter the number of periods as months, not years.
   
   In addition, be sure input the interest rate as a decimal instead of as a percentage.
   
   Convert this number by dividing by
   100.
   
   For example, 6% would be entered as 6%/100, or
   0.06.
   
   This would then by converted to a monthly rate by dividing by 12, to get
   0.06/12, or
   0.005. , This will calculate the future value of your savings.
   
   Type "=FV(B2,B3,-B4,-B1)" in the address bar.
   
   Or you can click the function button (labeled "fx") and choose the Future Value formula to create the formula.For this example, assume that you have $500 as a beginning balance, that your savings account earns 2 percent interest each month, that you will not be depositing additional money each month and that you want to see the result after five years. , Using the example variables, this account should total $552.54 after five years.
   
   In other words, at 2 percent interest, you will earn $52.54 after five years on savings of $500.
2. 2

   Step 2: Enter the details for your current savings plan.

3. 3

   Step 3: Create a formula in cell B5.

4. 4

   Step 4: Review the formula result.

Detailed Guide

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