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Saving the extra $20 a month greatly impacts the end savings of over $9000 more over the 20 years. The extra $9000 can go a long way. By the end of the 20 years, you can see that the interest earned, and contributions made are fairly more when even the small amount of $20 is added monthly.

If we save just the $200 monthly, the interest earned is $42,687.73, and contributions are $48,000 with a 0 initial deposit, therefore total savings are $90,687.73.

If we save $220 monthly, the interest earned is $49,956.50, and contributions are $52,800 with the same 0 initial deposit, therefore saving an awesome $99,756.50!

To calculate the amount of money you can save with an interest rate, you can use the compound interest formula:

To calculate the future value of your savings with a monthly interest rate, you can use the Future Value of an Annuity formula if you're making regular deposits, or the Compound Interest formula if it's a one-time deposit.

For regular deposits, the formula is:

FV=Pr(1+r)n1

Where:

• ( FV ) is the future value of the annuity (total amount of savings)
• ( P ) is the periodic deposit amount
• ( r ) is the monthly interest rate (as a decimal)
• ( n ) is the total number of deposits made
• ( A ) is the amount of money accumulated after n years, including interest.
• ( P ) is the principal amount (the initial amount of money)
• ( r ) is the annual interest rate (decimal)
• ( n ) is the number of times that interest is compounded per year
• ( t ) is the time the money is invested for, in years