Allowance Savings Calculator

Work out allowance savings instantly with clear inputs, formula shown and shareable results.

About Allowance Savings Calculator

Regular saving from an allowance compounds as an ordinary annuity: each contribution earns interest for the remaining months. At small balances and low rates the interest is modest, but the mechanism is exactly the one that drives long-term wealth building.

Formula

Future value of contributions

FV = C x ((1 + r)^n - 1) / r, r = annual rate / 12

Worked example

With the default values below, Allowance Savings Calculator returns Balance at the end of $444.65. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly allowance: 60
Share saved: 30 %
Months: 24 months
Annual interest: 3 %

Results

Balance at the end: $444.65
Total contributed: $432.00
Interest earned: $12.65
Saved each month: $18.00

Step by step

1Values used
2Future value of contributions
3Balance at the end= 444.65
4Total contributed= 432.00
5Interest earned= 12.65
6Saved each month= 18.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why is the interest so small here?

Because both the balance and the period are small. The formula matters because the same arithmetic on a pension over 40 years produces most of the final value.

What savings rate should a child aim for?

A third is a common target and leaves plenty to spend. The habit matters more than the percentage.