Calculate money market account earnings with daily, monthly, or annual compounding. Compare APY rates, see growth projections, and plan your savings.
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A money market account (MMA) combines the benefits of a savings account with higher interest rates and limited check-writing ability. Our money market calculator helps you project your earnings with compound interest, monthly contributions, and tax impact — so you can make smarter savings decisions.
A money market account is a type of federally insured deposit account offered by banks and credit unions. Money market accounts typically offer higher annual percentage yields (APY) than regular savings accounts in exchange for higher minimum balance requirements. They use compound interest — meaning you earn interest on your interest — which accelerates your savings growth over time.
Money Market Interest Formula
A = P(1 + r/n)^(nt) + PMT × ((1 + r/n)^(nt) - 1) / (r/n)See exactly how much interest your money market account will earn over any time period with compound interest calculations.
Understand how different annual percentage yields affect your total returns and find the best money market rates.
Calculate the impact of regular monthly deposits on your money market account balance over time.
See how daily, monthly, or quarterly compounding frequency affects your total money market earnings.
Money market accounts are ideal for emergency funds — they offer higher rates than savings accounts while keeping your money FDIC insured and accessible.
Saving for a vacation, car, or home down payment? Park your money in a high-yield money market account to earn interest while keeping funds liquid.
Keep a portion of retirement savings in a money market account for safe, accessible growth with minimal risk.
Businesses use money market accounts to earn interest on operating cash that needs to remain accessible for payroll and expenses.
Money market interest is calculated using the compound interest formula: A = P(1 + r/n)^(nt), where P is your principal, r is the annual rate, n is the compounding frequency, and t is time in years. With monthly contributions, the future value of those deposits is added: PMT × ((1 + r/n)^(nt) - 1) / (r/n).
At a 4.50% APY compounded daily, $10,000 would earn approximately $460 in interest after one year, growing to $10,460. After 2 years, you'd have about $10,940. The exact amount depends on the APY rate and compounding frequency.
At 5% APY, $1,000 would earn approximately $50 in interest after one year, giving you a total of $1,050. With daily compounding (which most money market accounts use), the actual earnings would be $51.27 due to the compounding effect.
At a typical money market rate of 4.50% APY compounded daily, $2,500 would earn approximately $115 in interest after one year ($2,615 total). With an additional $200 monthly contribution, you'd have about $5,071 after 12 months.
Money market accounts typically offer higher APY rates than regular savings accounts but may require higher minimum balances ($1,000–$25,000). They often include check-writing privileges and debit card access. Both are FDIC insured up to $250,000.
Most money market accounts compound interest daily, which maximizes your earnings. Some compound monthly or quarterly. Daily compounding on a 5% rate gives you an effective APY of approximately 5.13%, compared to 5.00% with annual compounding.
Yes, money market accounts at FDIC-insured banks are protected up to $250,000 per depositor, per bank. Credit union money market accounts are insured by NCUA for the same amount. This makes them one of the safest savings vehicles available.
Money market rates vary by institution. As of 2024-2025, competitive rates range from 4.00% to 5.25% APY at online banks and credit unions. Traditional brick-and-mortar banks typically offer lower rates (0.01%–1.00%). Use our calculator to compare how different rates affect your earnings.