Marcus Savings Goal Calculator

Marcus Savings Formula:

\[ A = P \times (1 + \frac{r}{365})^{365 \times t} + \sum\left(C \times (1 + \frac{r}{365})^{365 \times (t-Ct)}\right) \]

Initial Principal (P):

Annual Interest Rate (r):

decimal

Time Period (t):

years

Regular Contribution (C):

Contribution Time (Ct):

years

Final Amount (A):

1. What is the Marcus Savings Formula?

The Marcus Savings formula calculates the future value of savings with compound interest and additional contributions. It accounts for daily compounding (365 days/year) which is typical for high-yield savings accounts like Marcus by Goldman Sachs®.

2. How Does the Calculator Work?

The calculator uses the Marcus Savings formula:

\[ A = P \times (1 + \frac{r}{365})^{365 \times t} + \sum\left(C \times (1 + \frac{r}{365})^{365 \times (t-Ct)}\right) \]

Where:

$ A $ — Final amount ($)
$ P $ — Initial principal ($)
$ r $ — Annual interest rate (decimal, e.g., 0.0365 for 3.65%)
$ t $ — Time in years
$ C $ — Contribution amount ($)
$ Ct $ — Time when contribution is made (years)

Explanation: The formula calculates daily compounding interest on both the initial principal and any additional contributions made at specific times.

3. Importance of Savings Calculation

Details: Accurate savings projections help with financial planning, goal setting, and understanding how compound interest can grow your money over time.

4. Using the Calculator

Tips: Enter initial amount, interest rate (default is 3.65% APY), time period, and optional contribution details. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What is the default interest rate?
A: The default is 3.65% APY (0.0365 decimal), which is Marcus's current high-yield savings rate (as of 2023).

Q2: How often is interest compounded?
A: Interest is compounded daily (365 times per year) in this calculation.

Q3: Can I calculate without additional contributions?
A: Yes, simply enter $0 for the contribution amount.

Q4: How accurate is this calculator?
A: It provides a mathematical projection. Actual bank results may vary slightly due to rounding methods.

Q5: What's the benefit of daily compounding?
A: Daily compounding yields slightly better returns than monthly or annual compounding at the same APY.