Savings Account Dividend Calculator
Estimate dividend growth from deposits and reinvested dividends over time.
Estimated Ending Balance
- Total Contributions: 0.00
- Total Dividends Earned: 0.00
- Dividend Credits per Year: 0
How a Savings Account Dividend Calculator Works
Savings accounts that pay dividends credit earnings to your balance on a set schedule. When dividends are reinvested, future credits are calculated on a larger balance, which creates compounding growth. This calculator estimates your ending balance using your initial deposit, regular monthly contributions, dividend rate, and the credit frequency set by the institution.
Dividend Growth Formula
The calculation uses a compound growth model. The balance grows each time dividends are credited, and contributions add to the principal over the same timeline. If dividends are credited monthly, the annual dividend rate is divided by 12 to calculate the periodic rate. Contributions are aligned to the same period for a consistent estimate.
Why Credit Frequency Matters
A higher credit frequency means dividends are added to your balance more often. This slightly increases growth because each credit begins earning dividends sooner. For example, monthly credits generally yield a higher ending balance than annual credits at the same rate.
Example Scenario
Suppose you deposit 5000, add 200 each month, earn a 2.5% annual dividend rate, and dividends are credited monthly for 5 years. The estimated ending balance is about 18454, with total contributions of 17000 and roughly 1454 earned in dividends. This illustrates how steady contributions and reinvested dividends build long-term growth.
Common Use Cases
Use this calculator to compare savings accounts, set realistic deposit goals, or estimate how long it will take to reach a target balance. It is especially helpful when evaluating accounts that advertise dividend rates and different credit schedules.