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How much will monthly savings grow to?

Regular deposits are a payment stream, so they go in PMT. FV adds up what they’re worth at the end.

Problem

You save $500 a month for 20 years and earn 7% a year. How much will you have?

Keystrokes

  1. fFINx≷y
    0.00

    Start clean.

  2. 20g12×n
    240.00

    240 monthly deposits.

  3. 7g12÷i
    0.58

    Monthly rate.

  4. 500CHSPMT
    −500.00

    Each deposit, negative because you pay it in.

  5. FV
    260,463.33

    The balance at the end.

Answer

You’ll have $260,463.33, of which $120,000 is your own deposits and the rest is growth.

Why it works

Each deposit compounds for a different length of time: the first for almost 20 years, the last for none. FV adds them all up in one step.

Starting with a balance

If the account already holds money, key it as a negative PV before pressing FV. It grows alongside the deposits.

Questions

What if I deposit at the start of each month?

Press g BEG first. Each deposit earns one more month of interest, so the total is a little higher.

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