Is your money actually growing, or just sitting there? Enter your starting balance, how much you add each month and how many years, and this saving vs investing calculator shows what your money would really be worth after inflation: in cash, a savings account, a high-yield savings account, or invested.
I built this because of how I handle my own money. I keep my emergency fund in savings, but my long-term money goes into investing, because cash quietly loses value every year.
Saving vs Investing Calculator
See what your money is really worth after inflation: in cash, a savings account, a high-yield savings account, or invested.
Your money
Rates
What your money is worth in today’s dollars
How this is calculated
- Growth: each yearly rate is applied monthly, so a 10% year grows your money by exactly 10%. Cash earns 0%.
- Monthly contributions are added at the end of each month.
- Worth in today’s dollars is what your future balance will actually buy. Prices rise with inflation, so a future dollar buys less than a dollar today. At 3% inflation, $134 in 10 years buys what $100 buys today.
- Buying power gained or lost compares two things, both in today’s dollars: what your money buys at the end, and what your deposits were worth when you made them.
- Why later deposits count for less: a $500 deposit 20 years from now is only worth about $277 in today’s money, because prices will have risen by then. So the calculator counts it as $277, not $500. Money you put in today counts at full value.
Taxes and fees aren’t included. Stock market returns aren’t guaranteed: the market can drop a lot in any single year, so investing is for money you won’t need for at least 5 years. Keep your emergency fund in savings.
How to Use the Saving vs Investing Calculator
- Starting balance: the money you have saved now.
- Monthly contribution: how much you plan to add each month. Enter 0 if none.
- Years: how long you’ll leave the money alone.
- Inflation: 3% by default, close to the U.S. long-run average.
- Rates: the savings account, high-yield savings and investing rates. Change them to match your own bank or expectations.
Worked Example: $500 a Month for 30 Years
Say you start with $0 and put in $500 a month for 30 years, with 3% inflation. That’s $180,000 in total.
But a $500 deposit doesn’t buy the same thing every year. Prices keep rising, so the later you add it, the less it’s worth in today’s money:
| When you add $500 | What it buys in today’s dollars |
|---|---|
| Year 1 | $485 |
| Year 10 | $372 |
| Year 20 | $277 |
| Year 30 | $206 |
Add up all 360 deposits this way, and your $180,000 is worth $119,211 in today’s dollars. That’s the fair number to compare against.
Here’s what each option buys at the end:
| Option | Balance in 30 years | Worth in today’s dollars | Buying power |
|---|---|---|---|
| Cash | $180,000 | $74,158 | $45,053 lost |
| Savings account (0.37%) | $190,321 | $78,410 | $40,801 lost |
| High-yield savings (4%) | $342,635 | $141,161 | $21,950 gained |
| Investing (10%) | $1,031,422 | $424,932 | $305,721 gained |
Cash looks safe because the number never goes down. But $180,000 in 30 years only buys what $74,158 buys today. Compared with the $119,211 your deposits were worth, that’s $45,053 of buying power gone. Investing the same $500 a month buys more than 5 times as much as cash.
Why Cash Loses Money
Inflation makes things cost more every year. At 3% inflation, something that costs $100 today costs about $134 in 10 years. If your money doesn’t grow at least that fast, it buys less over time, even though the number in your account stays the same.
That’s why $10,000 kept in cash for 10 years only buys what about $7,441 buys today.
Savings vs. High-Yield Savings vs. Investing
- Cash and regular savings accounts lose to inflation. The national average savings rate is only 0.37%. Mine paid 0.01%. Here’s why I barely used my first savings account.
- High-yield savings accounts roughly keep up with inflation, and a bit less after taxes on the interest. They’re the right place for your emergency fund.
- Investing is the only option here that grows your buying power over the long run. The stock market has averaged about 10% a year since 1926, but it can drop a lot in any single year, so it’s for money you won’t need for at least 5 years.
Ready to start? Here’s how to open your first brokerage account.
Already have a brokerage account and want to buy your first stock? Here’s how.
Don’t know which stock or ETF to buy? Here’s what you need to know.
Interested in buying a stock or an ETF that pays dividends? I broke down how dividends work and what all 4 of my ETFs pay.
Saving vs Investing Calculator FAQ
Is it better to save or invest?
Both. Keep your emergency fund in a high-yield savings account, and invest money you won’t need for at least 5 years.
Does a high-yield savings account beat inflation?
Barely. At 4% with 3% inflation, $10,000 gains about $1,014 in buying power over 10 years, before taxes.
What is “worth in today’s dollars”?
It’s what your future balance will actually buy, after adjusting for inflation.
Is a 10% return guaranteed?
No. 10% is the stock market’s long-run average. Some years are much higher, and some are negative.
Why isn’t my buying power lost equal to what I put in minus what it’s worth today?
Because money you add later is already worth less by the time you add it. A $500 deposit in year 20 only buys what $277 buys today, so the calculator counts it as $277. Your deposits are compared at what they were worth when you made them.
This calculator gives estimates for informational purposes only and isn’t financial advice. Actual returns, rates and inflation will vary.