The Saving Plan Calculator calculates the total accumulation in a savings account, at the regular deposit frequency requested, in respect of the savings plan parameters entered, namely initial amount, regular deposit amount, term and interest rate.
As done in most financial calculators, all months are assumed to be of equal length. In reality, many savings accounts accrue on a daily basis leading to a varying number of days’ interest dependent on the number of days in the particular month.
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.
The calculator assumes that deposits and interest crediting occurs at the same frequency. This frequency is an input parameter entered by the user - namely monthly, fortnightly or weekly.
The time saved is presented as a number of years and months, for all available repayment frequency options, namely monthly, fortnightly & weekly. This is rounded down to the next lower month and hence is slightly conservative.
The amounts of total accumulation and interest earned are rounded to the nearer cent. In practice, the accuracy in these amounts is dependent on the rounding protocols used for interim amounts of interest credited to the account.