## Total Savings Calculator

The Total Savings Calculator is one of our resources on Buzzgrin.com. It is a simple tool that helps you calculate your total savings over a certain period of time. You can use it to get an estimate of how much you can save by taking into account your monthly income, monthly expenses, and investment rate.

## How Does it Works

The Calculator works by taking three inputs: your monthly income, your monthly expenses, and your investment rate. It then calculates your savings per month by subtracting your monthly expenses from your monthly income. This gives you an idea of how much you can save every month.

The calculator then multiplies your savings per month by 12 to get your total savings per year. It then applies your investment rate to your total savings per year using a compounding formula to calculate your total savings over a period of 5 years.

The formula used to calculate your total savings is:

Total Savings = (Savings per Month * 12) * ((1 + (Investment Rate / 100)) ^ 5 - 1) / (Investment Rate / 100)

## Using the Calculator

To use the Total Savings Calculator, you simply need to follow these steps:

- Enter your monthly income in the “Monthly Income” field.
- Enter your monthly expenses in the “Monthly Expenses” field.
- Enter your investment rate in the “Investment Rate” field. Your investment rate is the percentage return you expect to get on your investments.
- Click on the “Calculate Total Savings” button.

The calculator will then display your total savings over a period of 5 years in the “Total Savings” field.

## Example

Let’s say that I have a monthly income of $5,000 and my monthly expenses are $4,000. I expect to get a return of 6% on my investments. Here’s how the Total Savings Calculator would calculate my total savings over a period of 5 years:

Savings per Month= Monthly Income - Monthly Expenses = $5,000 - $4,000 = $1,000Total Savings per Year= Savings per Month * 12 = $1,000 * 12 = $12,000Total Savings= (Total Savings per Year) * ((1 + (Investment Rate / 100)) ^ 5 - 1) / (Investment Rate / 100) = ($12,000) * ((1 + (6 / 100)) ^ 5 - 1) / (6 / 100) = $74,667.96

So according to the Total Savings Calculator, if I save $1,000 per month and expect a 6% return on my investments, I can expect to have $74,667.96 in savings after 5 years.

## Conclusion

The Total Savings Calculator is a useful tool for anyone looking to calculate their savings over a certain period of time. It can help you make informed decisions about your finances and plan for your future financial goals.

By entering your monthly income, monthly expenses, and investment rate into the calculator, you can get an estimate of how much you can save over a period of 5 years.