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Compound Interest: What It Is, Formula, Examples

Savings Corner

When it comes to calculating interest, there are two basic choices: simple and compound. For example, if you invest $1,000 at 5% simple interest for 10 years, you can expect to receive $50 in interest every year for the next decade. In the investment world, bonds are an example of an investment that typically pays simple interest.

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Compound Interest Calculator – NerdWallet

Savings Corner

Try your calculations both with and without a monthly contribution — say, $5 to $200, depending on what you can afford. This savings calculator includes an example rate of return. Checking accounts are used for day-to-day cash deposits and withdrawals. But remember, that’s just an example.

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Savings Goal Calculator – NerdWallet

Savings Corner

Use our tool to start working toward your savings goal. How to use a savings goal calculator Here are brief definitions for terms used in the calculator. For example, if you want to save for a deposit on a home you plan to buy in three years, you would input three years. Tax Filing Webinar — Jan.

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How Much House Can I Afford? Affordability Calculator

Savings Corner

To calculate how much house you can afford, we take into account a few primary items, such as your household income, monthly debts (for example, car loan and student loan payments) and the amount of savings available for a down payment. In the above example, that would allow a mortgage payment of $1,260 to achieve a 28% DTI.

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Amortization Schedule Calculator – NerdWallet

Savings Corner

What’s behind the numbers in our mortgage amortization calculator An amortization calculator enables you to take a snapshot of the interest and principal (the debt) paid in any month of the loan. NerdWallet’s mortgage amortization schedule calculator can help you do all of those things. This is amortization at work.

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Mortgage Refinance Calculator: Should I Refinance?

Savings Corner

What this mortgage refinance calculator does If you’re thinking of refinancing your mortgage, it’s probably because you want to save money. The results of this calculator explain which one of the above categories your refinance would fit into. It calculates how much you would save (or not), year by year, by refinancing.

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What Is Credit Utilization Ratio? How to Calculate Yours

Savings Corner

Good credit utilization follows the 30% rule NerdWallet suggests using no more than 30% of your limits, and less is better. Having 100% credit utilization means that you have used all your available credit. Take this example: You have three credit cards. 3 since it has a $0 balance and you don’t use it often.