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How to Use a Savings Calculator

Using a savings calculator is a great way of finding out just how much more you can get on your savings.

Once you have some savings you can start to have fun with a savings calculator. In fact, you can use a savings calculator even before you start your savings plan and it may motivate you to save more quickly. A savings calculator is an online tool that will show you just how long it will take you to save a certain amount of money for a specific goal you may have.

You can also use a savings calculator for many other things of interest. When you have savings or investment amount you need to know it is attracting the highest interest possible. By using a savings calculator you can see just how much interest you will get over a specified time and it can give you a compound interest figure as well as a simple interest amount.

Simple interest is interest that is applied only to your original principal amount and any other deposits you make to it. Compound interest is applied to the principal and the interest each time it is added – so you are getting interest on your interest each month.

There are many different kinds of savings calculators so that you can find one to work out just about anything you would want to know about your savings and interest rates. It is a great motivational factor to see just how much your savings will be worth in one or two years, ten years or any other length of time. You can even compare simple interest with compound interest and see just how much more your savings will be worth.

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