Premium Savings Calculator

Inputs

More options help model pauses, caps, bonuses, withdrawals, and payout needs.

Currency

Initial Deposit

Optional starting balance.

Premium Deposit Per Period

Recurring contribution before caps and pauses.

Deposit Frequency

Term (Years)

Or solve term using your target amount.

Annual Return Rate (%)

Before simplified fees, taxes, and risk buffer.

Compounding (Times/Year)

Used to estimate effective annual growth.

Deposit Timing

Beginning deposits usually grow slightly more.

Contribution Escalation (%/year)

Smooth increase applied across periods.

Annual Fee Load (%)

Simplified reduction to annual return.

Tax on Earnings (%)

Applied as a simplified haircut to returns.

Inflation Rate (%/year)

Shows inflation-adjusted balances.

Rate Scenario

Quick sensitivity check for uncertainty.

Volatility Drag (%/year)

Reduces return to create a risk buffer.

Start Date (for period schedule)

Used only when period granularity is selected.

Projection Granularity

Annual Deposit Cap (Optional)

Limits all deposits within each year.

Annual Bonus Deposit

Added at the end of each eligible year.

Bonus Start Year

Bonus End Year

0 means through term.

One-Time Lump Deposit

Lump Deposit Year

0 disables the lump deposit.

Pause Start Year

Pause End Year

Withdrawal Amount

Taken at end of the specified year.

Withdrawal Year

0 disables the withdrawal.

Target Amount (Optional)

Used for guidance and goal solving.

Goal Solve Mode

Requires a target amount above.

Max Years for Term Solve

Only used when solving term.

Payout Years (Optional)

Estimates a level payout after the term.

Payout Frequency

How often you want to withdraw during payout.

Payout Return Rate (%)

Optional override return during payout phase.

Display Rounding (Decimals)

Reset

Formula Used

This calculator grows a balance using a periodic rate derived from annual return, compounding, fees, taxes, and an optional risk buffer. Deposits may escalate, pause, or be capped annually.

Step 1 Adjust annual return and convert to effective annual.

annual_rate_used = max(0, annual_rate ± scenario − volatility_drag)
net_annual = annual_rate_used × (1 − fee) × (1 − tax)
effective_annual = (1 + net_annual/compounding)^{compounding} − 1

Step 2 Convert effective annual to periodic deposit rate.

r = (1 + effective_annual)^{1/payments_per_year} − 1

Step 3 Iterate deposits and growth for schedule features.

balance = balance × (1 + r) + deposits − withdrawals
deposits may include escalation, annual caps, bonuses, and lumps

Goal solve uses binary search over premium or term to reach the target.

How to Use This Calculator

Enter your deposit amount and select a frequency.
Choose return, fees, and tax for planning assumptions.
Add escalation if deposits grow over time.
Use caps and pauses to reflect real cash-flow limits.
Add bonuses, lumps, or withdrawals for special events.
Set a target and goal solve to estimate term or premium.
Optional: add payout years to estimate withdrawals.

Professional overview for planning and reporting.

Premium deposits as disciplined cash-flow design

A premium savings plan works best when deposits match your cash cycles. The calculator models weekly, biweekly, monthly, and other schedules, then applies timing rules to show how early deposits compound longer. Escalation lets deposits rise gradually to reflect salary growth or pricing changes. With period granularity, the schedule can include dates from your chosen start date for reconciliation.

Return assumptions, fees, taxes, and risk buffers

Results are driven by the return rate you select, but planning requires net assumptions. This tool reduces the stated annual return by a fee load and an earnings tax haircut, then converts the outcome into an effective rate using the chosen compounding frequency. Volatility drag provides a conservative margin for uncertain markets, and scenario settings apply a plus-or-minus adjustment to test optimistic and cautious expectations.

Caps, pauses, bonuses, and one-time events

Real policyholders rarely contribute perfectly every period. Annual contribution caps help you simulate budget ceilings or product limits and apply across periodic deposits, bonuses, and lump additions. Pause years model temporary gaps without deleting the plan. Bonuses and one-time lumps represent seasonal incentives, refunds, or windfalls, while year-specific withdrawals simulate emergencies or purchases that reduce the balance.

Interpreting schedules and inflation-adjusted values

The yearly schedule separates deposits, extra additions, and withdrawals, and it reports both nominal and inflation-adjusted balances. Nominal values show account growth, while real values estimate purchasing power in today’s terms. Comparing both helps align savings targets with future costs such as renewals or coverage upgrades. Exporting the schedule to CSV supports audits and comparisons across scenarios.

Goal solving and optional payout planning

If you enter a target amount, the calculator can estimate either the starting premium required or the term length needed to reach that target, using an iterative search under your selected rules. After the term, the optional payout module estimates a level withdrawal over a chosen payout horizon. You can override the payout return assumption to reflect a conservative allocation during drawdown.

Example Data Table

Illustrative rows showing how extra options change outcomes.

Premium / Month	Term	Return	Cap	Bonus	Lump	Withdrawal	Expected FV Range
$150	10y	6%	None	$300/yr	Year 3: $2,000	None	$31,000–$36,000
$250	15y	7%	$5,000/yr	None	None	Year 5: $1,000	$75,000–$90,000
$400	8y	5%	None	$500/yr	Year 1: $5,000	Year 6: $3,000	$55,000–$66,000

Ranges vary by timing, inflation, and risk buffers.

FAQs

1) What does “premium deposit” mean in this calculator?

It is the recurring amount you set aside each period as a savings-style contribution. The tool treats it like a deposit into an earning balance, not an insurance premium billed by a provider.

2) Why are fees and taxes applied to the return rate?

They are modeled as a simplified reduction to returns so projections are more conservative. Real products may charge fees differently or tax only certain earnings, so use this mainly for scenario comparison.

3) How does escalation change the results?

Escalation increases each future deposit gradually over time. This can materially raise the ending balance, especially over long terms, because later deposits are larger and still have time to compound.

4) What happens when I set an annual deposit cap?

The calculator limits total deposits within each year, including periodic deposits, bonuses, and lump additions. Once the cap is reached, extra deposits for that year are reduced to fit.

5) How does goal solving work?

With a target amount, the tool can search for either the starting deposit needed or the term required. It iteratively simulates outcomes under your selected rules until the target is met.

6) Is the payout estimate a guaranteed withdrawal amount?

No. It is a planning estimate that amortizes the ending balance over the payout horizon using a return assumption. Market performance, fees, taxes, and withdrawal timing can change actual sustainable payouts.