Calculate your potential earnings with SoFi's high-yield savings accounts.
Your Estimated Earnings
Estimated Interest Earned
Estimated Total Balance
How it Works
This calculator estimates your total interest earned and final balance based on your initial deposit, regular contributions, the current Annual Percentage Yield (APY) of your SoFi savings account, and the duration you expect to save.
Understanding APY and Your SoFi Savings Account
SoFi's High Yield Savings Accounts (HYSA) are designed to help your money grow faster than traditional savings accounts. A key feature that enables this is the Annual Percentage Yield (APY). Understanding APY and how it applies to your SoFi account can empower you to make informed financial decisions and maximize your savings growth.
What is APY?
APY, or Annual Percentage Yield, represents the real rate of return earned on an investment or savings account over a one-year period. It takes into account the effect of compounding interest. Unlike the Annual Percentage Rate (APR), which simply states the simple interest rate, APY shows the total interest you will earn after accounting for interest being added to your principal, which then also earns interest. This compounding effect is crucial for long-term wealth building.
How SoFi's APY Works
SoFi typically offers competitive APY rates on its savings accounts, which can change over time based on market conditions and the Federal Reserve's monetary policy. The APY advertised by SoFi is the rate you can expect to earn over a year, assuming the rate remains constant and all interest earned is reinvested (compounded).
The Math Behind APY Calculation
While this calculator provides a simplified estimate, the actual calculation of APY involves compounding. A common formula to estimate future value with regular contributions is:
n = Number of times that interest is compounded per year (often 12 for monthly for simplicity in these calculators, though actual bank compounding might be daily)
t = Time the money is invested or borrowed for, in years
PMT = Periodic Payment (Monthly Contribution)
Our calculator simplifies this by using a monthly compounding approach that directly uses the provided APY and monthly contributions over the specified number of months. It calculates the interest earned each month and adds it to the balance, then repeats for the duration.
Simplified Monthly Calculation:
Each month, the interest earned is: (Current Balance + Monthly Contribution) * (Monthly Interest Rate)
Where Monthly Interest Rate = APY / 12 (assuming monthly compounding for estimation).
This interest is added to the balance for the next month's calculation.
Why Use a SoFi APY Calculator?
Goal Setting: Estimate how long it will take to reach a specific savings goal.
Contribution Planning: Determine how much you need to save monthly to achieve your targets.
Understanding Growth: Visualize the power of compounding interest and how your savings can grow over time.
Comparing Options: While this calculator is specific to SoFi, the principle helps in understanding the yield of any savings product.
Key Considerations
APY Fluctuations: SoFi's APY is variable and can change. The calculator provides an estimate based on the current rate.
Taxes: Interest earned is typically taxable income. Consult a tax professional for advice.
Fees: Ensure there are no hidden fees that could impact your net earnings. SoFi's HYSA is generally known for having no monthly fees.
By utilizing tools like this APY calculator, you can better plan your financial future and make the most of your SoFi savings account.
function calculateAPY() {
var initialDeposit = parseFloat(document.getElementById("initialDeposit").value);
var monthlyContributions = parseFloat(document.getElementById("monthlyContributions").value);
var apyRate = parseFloat(document.getElementById("apyRate").value);
var timePeriodMonths = parseInt(document.getElementById("timePeriodMonths").value);
var errorMessageElement = document.getElementById("errorMessage");
var resultSection = document.getElementById("resultSection");
// Clear previous errors and results
errorMessageElement.textContent = "";
resultSection.style.display = "none";
// Input validation
if (isNaN(initialDeposit) || initialDeposit < 0) {
errorMessageElement.textContent = "Please enter a valid positive number for the Initial Deposit.";
return;
}
if (isNaN(monthlyContributions) || monthlyContributions < 0) {
errorMessageElement.textContent = "Please enter a valid positive number for Monthly Contributions.";
return;
}
if (isNaN(apyRate) || apyRate = 100) {
errorMessageElement.textContent = "Please enter a valid APY percentage between 0 (exclusive) and 100 (exclusive).";
return;
}
if (isNaN(timePeriodMonths) || timePeriodMonths <= 0) {
errorMessageElement.textContent = "Please enter a valid positive number for the Time Period (in Months).";
return;
}
var monthlyInterestRate = apyRate / 100 / 12;
var currentBalance = initialDeposit;
var totalInterestEarned = 0;
for (var i = 0; i < timePeriodMonths; i++) {
var interestThisMonth = currentBalance * monthlyInterestRate;
totalInterestEarned += interestThisMonth;
currentBalance += interestThisMonth + monthlyContributions;
}
var finalBalance = initialDeposit + totalInterestEarned + (monthlyContributions * timePeriodMonths);
// Recalculate total interest based on final balance to ensure accuracy with contributions
totalInterestEarned = finalBalance – initialDeposit – (monthlyContributions * timePeriodMonths);
document.getElementById("totalEarnings").textContent = "$" + totalInterestEarned.toFixed(2);
document.getElementById("finalBalance").textContent = "$" + finalBalance.toFixed(2);
resultSection.style.display = "block";
}