Savings Interest Difference

Free Savings Interest Difference calculator with clear step-by-step results.

About Savings Interest Difference

Comparing two rates shows the real cost of leaving savings in a low-rate account.

Formula

Interest = amount × ((1 + rate)^years − 1)

Worked example

With the default values below, Savings Interest Difference returns Interest at Rate B of $2,166.53. Change any input above and every figure here is recalculated in your browser.

Inputs used

Amount savedminimum 0 $: 10,000 $
Rate A (e.g. old account)accepts 0–15: 2
Rate B (e.g. new account)accepts 0–15: 4
Yearsaccepts 1–40: 5

Results

Interest at Rate A: $1,040.81
Interest at Rate B: $2,166.53
Difference: $1,125.72

Step by step

1Values used
2Formula
3Interest at Rate B= $2,166.53
4Interest at Rate A= $1,040.81
5Difference= $1,125.72

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, fees or charges or compounding frequency 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.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

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

Frequently Asked Questions

How does this calculator work?