Introduction
A money market account is a savings account that usually pays a higher interest rate than a basic one. This money market calculator shows how much your money can grow over time.
Pick what you want to find out. You can solve for your total savings, the monthly deposit you need to hit a goal, or the time it takes to get there. Just type in your starting balance, your monthly deposit, your APY, and how often interest compounds.
You will see your ending balance, your total deposits, and the interest you earn. A chart and a data table show your growth month by month. You can also compare two accounts side by side to see which rate saves you more. Each answer comes with the math steps, so you can check the work yourself.
How to use our Money Market Calculator
Enter your savings details below and the calculator shows your total savings, the monthly deposit you need, or how long it will take to hit your goal, plus your total interest earned.
What would you like to calculate? Pick one of three modes: Total Savings, Monthly Contribution Needed, or Timeframe Needed. The calculator only shows the fields that mode needs.
Starting Balance: Type the money you already have in your money market account today. Use $0.00 if you are starting from scratch.
Monthly Contribution: Type the amount you plan to add each month. This field is hidden when you ask the calculator to find that amount for you.
Savings Goal: Type the balance you want to reach. This field shows up in the Monthly Contribution and Timeframe modes. To plan a target date around a set dollar amount, our savings goal calculator works well alongside this one.
APY: Type the annual percentage yield your bank pays, like 4.5. This is the yearly rate your money earns. If your bank quotes a plain interest rate instead, the APY to APR calculator can help you translate between the two.
Compounding Frequency: Choose how often interest is added to your balance: daily, monthly, quarterly, or annually. For a closer look at day-by-day growth, try the daily compound interest calculator.
Timeframe: Enter how long you will save, in years and months. Years can be 0 to 99 and months 0 to 11, with at least 1 month total.
Calculate, Reset, and Compare: Click Calculate to see your results, chart, and step-by-step math. Click Reset to start over. Click Compare a Second Scenario to test two rates or plans side by side.
What Is a Money Market Account?
A money market account (MMA) is a savings account at a bank or credit union. It pays interest on the money you keep in it, and it usually pays more than a basic savings account. Many money market accounts also come with a debit card or checks, so you can reach your cash when you need it.
How Money Market Accounts Grow Your Money
Your bank pays you interest for keeping your money there. That interest gets added to your balance. Then the new, bigger balance earns interest too. This is called compound interest. The longer you leave your money alone, the more it grows.
Money market savings grow from three things:
- Your starting balance — the money you already have saved.
- Your monthly deposits — the money you add each month.
- Interest earned — the money the bank pays you. You can check a single month's payout with the monthly interest calculator.
What APY Means
APY stands for Annual Percentage Yield. It shows how much your money grows in one year, including compounding. A 4.50% APY means $1,000 turns into about $1,045 after a year if you don't touch it. When you shop for an account, compare the APY, not just the interest rate. The higher the APY, the faster your savings grow. Our savings interest calculator shows the same idea from the interest side.
Compounding Frequency
Banks add interest to your account on a schedule — daily, monthly, quarterly, or yearly. Adding it more often helps a little, because your interest starts earning interest sooner. The difference is small, but over many years it adds up. The effective interest rate calculator shows exactly how much frequency changes your yield.
Money Market vs. Savings vs. CDs
A regular savings account is simple and easy to open, but often pays less. A CD (certificate of deposit) locks your money up for a set time and may pay more, but you pay a fee if you take it out early. A money market account sits in the middle: strong rates with easy access to your cash. A high-yield savings account is another close cousin worth comparing.
Things to Watch For
- Minimum balance: Some accounts need $1,000 or more to avoid a fee or earn the best rate.
- Monthly fees: A fee can eat up the interest you earn.
- Withdrawal limits: Some banks limit how many transfers you can make each month.
- Changing rates: The APY can go up or down. It is not locked in like a CD.
- Insurance: Look for FDIC (bank) or NCUA (credit union) coverage, which protects up to $250,000 per depositor.
- Inflation: Rising prices chip away at what your balance can buy — see the inflation calculator.
Good Uses for a Money Market Account
Money market accounts work well for an emergency fund, a house down payment, a car, a wedding, or any goal in the next few years. They are safe and steady. For long-term goals like retirement, investing usually earns more, but it also carries more risk. Parents saving for tuition may also want the college savings calculator.
Tips to Save Faster
- Set up an automatic transfer each payday so you never forget. A monthly budget calculator helps you find room for it.
- Start early. Time matters more than the size of each deposit — the rule of 72 calculator shows how fast money doubles.
- Compare banks once a year. Online banks often pay higher APYs.
- Leave the interest in the account so it can compound, and check your projected balance with the future value calculator.
- Remember that interest you earn counts as taxable income, so factor it into your income tax planning.