For a savings account, use the APY your bank actually pays. For long-term stock market investing, 7–10% per year is a commonly used historical average for a diversified US portfolio — but it is an average, not a promise, and any single year can be far higher or lower (including negative).

A smaller one than most people expect. Daily vs. monthly compounding on $10,000 at 7% over 20 years differs by well under 1% of the final balance. The rate, the time period, and your contributions matter far more.

No. This calculator shows growth before taxes and inflation. To think in “today's dollars,” you can subtract expected inflation (often around 2–3% per year) from your return rate for a rough real-return estimate.

It depends on inflation. If prices rose 3% in the same year, a 3% raise keeps your buying power flat rather than increasing it. Raises above the inflation rate are real gains; raises below it are effectively small pay cuts in what your money buys.

Roughly your gross increase minus your marginal tax rate and any payroll deductions. Someone in the 22% federal bracket with state tax and FICA might take home about 60–70% of the gross raise. This calculator shows gross figures because take-home depends on your full tax situation.

Multiply your hourly rate by hours per week, then by 52 weeks. At 40 hours a week, that's rate × 2,080 hours — so $30/hour ≈ $62,400/year. This calculator does the conversion automatically when you switch to “Hourly wage.”

Mathematically, paying sooner always wins, so a lump sum today beats spreading the same total over the year. In practice, extra monthly payments win for most people because they're automatic and sustainable. Do whichever you'll actually stick to.

Paying off a loan earns a guaranteed return equal to its interest rate, with zero risk. If your loan is at 8.5% and expected investment returns are around 7–10% with real ups and downs, the loan payoff is often the better deal — especially for high-APR debt. Keep an emergency fund first, though.

If your monthly payment is less than the interest accruing each month, the balance grows instead of shrinking and the loan can never be paid off. The payment must exceed balance × APR ÷ 12 to make progress.

A common guideline is the 28/36 rule: housing costs (principal, interest, tax, insurance, HOA) under 28% of your gross monthly income, and all debt payments under 36%. Lenders vary, and a payment that's “approved” isn't always comfortable — leave room for maintenance, which averages 1–2% of the home's value per year.

Interest is charged on the outstanding balance, which is largest at the start. On a $340,000 loan at 6.75%, the first month's interest alone is about $1,913. As the balance falls, the interest share shrinks and more of each fixed payment goes to principal.

Private mortgage insurance protects the lender when you put down less than 20%. It typically costs 0.5–1% of the loan per year, added to your monthly payment. On a conventional loan it can usually be removed once you reach 20% equity, and it drops off automatically at 22%.

Then that balance grows even while you pay — common with minimum payments set at 1–2% of the balance on high-APR cards. The calculator will warn you. The fix is to raise the total budget so every debt's payment exceeds its monthly interest (balance × APR ÷ 12).

Most financial planners suggest keeping a small starter emergency fund (often $1,000–$2,000, or one month of expenses) first, so one surprise bill doesn't push you back onto the cards. After that, high-APR debt usually takes priority over extra investing, since paying off a 25% APR card is a guaranteed 25% return.

You can add any fixed-payment debt, but this tool is designed for revolving and personal debts. Mortgages and auto loans have their own amortization schedules — see the Mortgage and Loan Payoff calculators for those.

The common guideline is 3–6 months of essential expenses — use the runway mode above with your bare-bones monthly spending to see what that means for you. Single-income households, freelancers, and anyone with variable income usually aim for the higher end.

Use the APY on your actual account. High-yield savings accounts have recently paid around 4–5%, while traditional bank savings accounts often pay under 0.5% — on a $50,000 goal, that difference can change your timeline by months.

Because contributions compound too. An extra $100/month doesn't just add $100 — every past contribution is also earning returns. Over a 10-year goal, an extra $100/month at 5% adds about $15,500 to the final balance, not $12,000.