1. What is the Savings Withdrawal Calculator?

The Savings Withdrawal Calculator helps you determine your remaining balance after making a withdrawal from an interest-bearing account. It accounts for both the withdrawal amount and the interest earned during the period.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Balance} \) — Initial account balance
• \( r \) — Interest rate (in decimal form)
• \( \text{Withdrawal} \) — Amount withdrawn

Explanation: The formula first calculates the balance with earned interest, then subtracts the withdrawal amount to give the final balance.

3. Importance of Calculating Withdrawals

Details: Understanding how withdrawals affect your savings is crucial for financial planning, especially when your money is earning interest. This helps prevent over-withdrawal and maintains your savings goals.

4. Using the Calculator

Tips: Enter your current balance, annual interest rate (as a percentage), and the amount you plan to withdraw. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this calculator account for compound interest?
A: This calculates simple interest for a single period. For compound interest over multiple periods, a different calculator would be needed.

Q2: What if my withdrawal is more than my balance plus interest?
A: The calculator will show a negative balance, indicating you've withdrawn more than available funds.

Q3: Can I use this for monthly interest calculations?
A: Yes, if you use the monthly interest rate (annual rate divided by 12).

Q4: Does this account for taxes on interest?
A: No, this calculates gross amounts before any tax implications.

Q5: How accurate is this for real-world savings accounts?
A: This provides a basic calculation. Actual accounts may have different compounding methods or fees.