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Savings plan calculator

A savings plan calculator shows how regular monthly contributions add up over a chosen number of years when you apply a yearly rate. It gives a simple picture of total contributions and the growth on top. The result is an illustration, not a promise of what any fund will pay.

Savings plan calculator

A fixed amount every month, for a number of years, at a yearly rate you choose.

NGN
years
%
Filled in for you:23.00%central bank monetary policy rateThis is not the return of any fund. Type the rate you want to test.

After 5 years you would have

1,108,180NGN

You put in
600,000 NGN
Growth at this rate
508,180 NGN

Monthly compounding, contributions at the end of each month, no fees or tax.

A fund’s return changes every day and can be negative. The result above is arithmetic on the rate in the box, not a forecast.

How to use the calculator

Enter the amount you plan to add each month. Enter the number of years you will keep saving. Then enter a yearly rate to apply to the balance.

The calculator compounds the balance over time and adds each new monthly contribution. It then shows two figures: the total you paid in, and the extra amount the rate produced.

The rate field comes pre-filled with the central bank policy rate. That rate is a policy tool set by the central bank. It is not the return of any mutual fund, and it is not a forecast.

What the result leaves out, and why a fund will not follow a constant rate

The result does not subtract fund fees or charges. It does not subtract tax. It also ignores changes in the price of the fund's holdings, which move up and down.

A real fund does not earn the same rate every year. Its holdings change in value, and its return varies from one period to the next. A steady rate in a calculator is only a simplifying assumption.

Use the output as a rough guide for planning, not as a statement of what you will receive. Check a fund's own documents for its fees and its past returns, and remember that past returns do not predict future ones.

A common mistake

Treating the pre-filled policy rate as the return you will get from a fund. That rate is a central bank setting, not a fund result, and actual returns will vary.

Sources 1

Every figure on this page points to one of these. The date is the day we read the source.

  1. 1Central bankMonetary policy committee decisions, Central Bank of Nigeriawww.cbn.gov.ngmonetary policy rate