Savings Calculator
Plan your wealth building with compound interest, inflation and taxes.
Calculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
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Savings accounts about 2–3%, equities 6–8% in the long run
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More detailsMonthly · no annual increase · inflation 2% · without taxes
Annual increase of the savings rate
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Reach the goal via
€58,000 in deposits grow to €109,333 after 20 years at 5% interest. In today's purchasing power that is €73,578.
- 19 yrFirst €100,000
- 20 yrFinal capital €109,333
- 19 yrFirst €100,000
- 20 yrFinal capital €109,333
- Starting capital
- €10,000.00
- Instalments
- + €48,000.00
- Interest
- + €51,333.14
- Final capital
- €109,333.14
- Total return
- 88.5%
- Effective annual returnInternal rate of return on your deposits
- 5.12%
- Purchasing power in today's money32.7% loss of purchasing power (€35,755)
- €73,578.07
- Return after inflation
- 26.9%
What you can do
€50 more per month+€20,552
Final capital then €129,885.
Save for 25 years+€44,582
You pay in €12,000 more – compound interest does the rest.
With 2% inflation, your capital loses 33% of its purchasing power.
How this was calculated
Savings frequency: Monthly. Interest compounds on the current balance.
Solving for the final capital from savings rate, interest and term.
The earlier you start and the longer you save, the stronger the compound interest effect becomes. Time is your most important ally in building wealth.
RZ-26 · headon.pro
Savings calculator: everything about building wealth
Plan your investment with compound interest, inflation and taxes
Our savings calculator helps you plan your investment. Calculate how regular deposits develop over time – taking compound interest, inflation and taxes into account.
The calculator lets you play through different scenarios and find out which savings rate you need for your financial goals or what final capital you can reach with your current savings rate.
The power of compound interest
The eighth wonder of the world for your wealth building
Albert Einstein is said to have called compound interest the "eighth wonder of the world." The effect: your interest itself earns interest. The longer you save, the stronger this effect becomes.
- €200 monthly at 7%
- €200
- Deposited
- €24,000
- Interest
- + €10,000
- Final capital
- ~€34,000
- €200 monthly at 7%
- €200
- Deposited
- €48,000
- Interest
- + €56,000
- Final capital
- ~€104,000
- €200 monthly at 7%
- €200
- Deposited
- €72,000
- Interest
- + €173,000
- Final capital
- ~€245,000
Understanding inflation
Preserving purchasing power through sufficient returns
Inflation reduces the purchasing power of your money. At 2% inflation, your money loses about half its value over 35 years.
- Nominal return
- The growth in euros without accounting for inflation
- Real return
- Nominal return minus the inflation rate – the actual increase in purchasing power
Taxes on capital gains
Flat-rate withholding tax and tax-free allowance
In Germany, capital gains are taxed with the flat-rate withholding tax (Abgeltungssteuer):
- 25% capital gains tax
- Flat tax on interest, dividends and capital gains
- 5.5% solidarity surcharge
- Calculated on top of the capital gains tax
- 8-9% church tax
- If applicable, also calculated on the capital gains tax
- ~26.4% - 28% total
- Depending on church affiliation and federal state
ETF savings plan vs. fixed-term deposit
The right investment type for your goals
For long-term wealth building, equity ETFs are often the better choice. Here is a comparison of the most important investment types:
- Overnight deposit
- Return: 0-3% | Risk: very low | Availability: any time
- Fixed-term deposit
- Return: 2-4% | Risk: low | Availability: after term
- MSCI World ETF
- Return: ~7-9% | Risk: medium | Availability: daily on exchange
- DAX ETF
- Return: ~6-8% | Risk: medium-high | Availability: daily on exchange
*Historical average returns, not a guarantee for the future.
Dynamic savings rate
Automatic adjustment for maximum wealth building
A dynamic savings rate increases annually by a fixed percentage (e.g. 3%). This offers several advantages:
- 1Adjustment to rising salariesYour savings rate grows along with your income
- 2Offsetting inflationThe real burden stays constant
- 3Significantly higher final capitalUp to 50% more wealth possible
- 4Automatic wealth buildingNo manual adjustment needed
- Monthly savings rate
- €200
- Total deposits
- €72,000
- Interest
- + €173,000
- Final capital
- ~€245,000
- Starting savings rate
- €200
- Total deposits
- ~€114,000
- Interest
- + €219,000
- Final capital
- ~€333,000
Tips for building wealth
How to get the most out of your savings plan
- 1Start earlyTime is your greatest ally in the compound interest effect. Even small amounts have an impact over the long term.
- 2Save regularlyEven small amounts add up. A savings plan from €25/month already makes sense.
- 3DiversifyDon't put all your eggs in one basket. Globally diversified ETFs minimize risk.
- 4Minimize costsLow-cost ETFs instead of expensive funds. 1% less in costs = up to 30% more final capital.
- 5Stay the courseDon't sell in a panic during market fluctuations. Over the long term, fluctuations even out.
- 6Emergency fund firstSave 3-6 months of salary as a reserve first, before investing long term.
Application examples
- 1Retirement planningHow much do I need to save monthly to have €500,000 by age 67?
- 2Home ownershipHow long do I need to reach €80,000 in equity with a €400 monthly savings rate?
- 3Child provisionWhat does a €100/month savings plan bring by my child's 18th birthday?
- 4SabbaticalWhat savings rate do I need for a year off in 5 years?
Note
These calculations are for illustration purposes and do not replace professional financial advice. Past returns are no guarantee of future returns. Investing always carries a risk of loss.
Frequently asked questions
Everything important about the savings calculator
What is the compound interest effect?
The compound interest effect means that interest is paid on interest already earned. The longer you save, the stronger this effect becomes and your wealth grows exponentially.
How are capital gains taxed in Germany?
Capital gains are taxed with the flat-rate withholding tax (25% + 5.5% solidarity surcharge). With church tax, it is about 27.8-28%. The first €1,000 (singles) or €2,000 (married couples) are tax-free (tax-free allowance).
What is better: ETF savings plan or fixed-term deposit?
For long-term wealth building (>10 years), ETF savings plans are usually more advantageous. They historically offer higher returns (7-9% vs. 2-4%), but also carry higher risk. Fixed-term deposits are suited to short-term goals.
What does a dynamic savings rate do?
A dynamic savings rate increases annually (e.g. by 3%) and offsets inflation and salary increases. The final capital can rise by 50% or more compared to a fixed savings rate as a result.