Savings vs Investing Calculator

Compare the long-term impact of keeping money in savings accounts versus investing

Calculator Inputs

Quick Scenarios

Initial Amount

Contribution Amount

Monthly equivalent: $500

Time Horizon: 10 years

1 year30 years

Savings Interest Rate: 3%

0.5%6%

Expected Investment Return: 8%

3%200%

Inflation Rate: 2.5%

0%10%

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Results Summary

Investment Scenario

Savings Account

Final Value:$79,315

Total Gain:+$9,315

After Inflation:$61,960

Effective Return:2.16% after tax

Investment Portfolio

Final Value:$113,669

Total Gain:+$43,669

After Inflation:$88,798

Scenario Return:8% (expected)

Investment Advantage

$34,355

43.3% more than savings

Total Contributed

$70,000

Contribution Frequency

monthly

Years to Double (Savings)

33.3 years

Years to Double (Investing)

9.0 years

Growth Over Time

Note: This chart shows nominal values. The impact of inflation reduces the real purchasing power of both savings and investments over time.

Real Value (After Inflation)

Inflation Impact

After 10 years at 2.5% inflation, $100 today will only buy $78 worth of goods.

Break-Even Point

Savings need to earn at least 2.5% after tax just to maintain purchasing power. Current real return: -0.34%

When to Use Savings vs Investing

Use Savings For:

Emergency fund (3-6 months expenses)
Money needed within 1-2 years
Specific short-term goals
House deposit (if buying soon)

Use Investing For:

Long-term goals (5+ years)
Building wealth over time
Retirement planning
Beating inflation

Important: This calculator shows potential outcomes based on historical averages. Actual returns will vary. Past performance doesn't guarantee future results. Always maintain an emergency fund before investing.