Enter "savings calculator," "financial calculator," or a similar term into your favorite search engine to locate an online future value calculator. Once you find such a page, you will see a simple form asking you for the variables described above. You would simply type the requested numbers, press a button, and see what the future value of money invest now will be, assuming all the variables stay constant through the life of the investment.

One of the nicest features of financial account calculators is that they allow you to do "what if" scenarios quickly and easily. If you are trying to decide which savings account to invest your money into, you can enter the numbers of both accounts into the calculator. Be sure to use the same amount of time and the same initial principal in both scenarios. The financial program will calculate which account will have the most amount of cash at the end of the investment period.

The principal is the initial amount of money you intend to place into the account. This amount will grow over time due to compounding interest. Few people remember how to calculate compound interest, much less remember where their car keys are, so these savings calculating websites are a handy tool. If you will be making periodic deposits into the account over time, you need to enter those values into the calculation form.

Next, enter the interest rate that you expect your savings to earn. Be careful here as to which rate the account calculator is asking for. It might ask for an annual rate. If you only have the monthly rate, multiply it by 12 to estimate the annual percentage rate (APR). Likewise, if the savings calculation requires the monthly rate and you have the APR, divide it by 12 to estimate the monthly interest earnings.

How long will the money stay in the savings account? This is necessary in the calculation. If the interest rate is given in months, the investment period might need to be in months too. If the interest requests an annual rate, the life of the savings account might need to be entered in years too. Pay attention and you will do fine. If you are not sure of what to enter, there is usually a help button or section. Sometimes you can leave an entry blank and the financial calculator program will enter a typical or default value for you.

To calculate the future value of a present value investment, the compounding rate may be needed as well. This is the number of times per year that interest is calculated on the amount of savings you have. If you don't know, and no default value is offered, assume it is calculated once per year.

It takes much longer to read how to use a savings calculator than it takes to use one! You can enter several different principal amounts, interest rates, and investment times, and the savings account calculator will instantly tell you which combination gives you the highest future earnings.