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Calculator Answers

Money Market Calculator

Blake Boege
Written by Blake Boege · Founder, Calculator Answers

A money market calculator projects the future balance of a money market account (MMA) by applying compounding interest to an initial deposit and optional recurring contributions. Because MMAs typically calculate interest daily and pay it monthly, the calculator uses daily compounding by default. It helps savers compare interest rates (APY) and plan long-term savings goals.

Estimate the growth of your money market account. Enter your starting deposit, interest rate (APY), savings term, and monthly contributions to see your future balance and a year-by-year schedule.

See also: APY Calculator and Stock Profit Calculator.

Quick Answer

Project how your money market account will grow over time with daily compounding interest and recurring monthly contributions. View your future balance and a year-by-year growth table.

$

Starting balance for your money market account. · e.g. 10,000

%

Annual Percentage Yield. · e.g. 4.5

yr

e.g. 10

Compounding frequency

$

Amount added to the account each month. · e.g. 100

Estimated MMA Balance

Future balance after 10 years

$30,809.06

Contributed $22,000.00 · interest earned $8,809.06

Starting deposit$10,000.00
Monthly contribution$100.00
Total contributions$22,000.00
Total interest earned$8,809.06
Compounding ruleDaily compounding

Year-by-Year Growth Schedule

YearStart BalDepositsInterestEnd Bal
1$10,000.00$1,200.00$485.36$11,685.36
2$11,685.36$1,200.00$562.93$13,448.28
3$13,448.28$1,200.00$644.06$15,292.35
4$15,292.35$1,200.00$728.94$17,221.29
5$17,221.29$1,200.00$817.72$19,239.00
6$19,239.00$1,200.00$910.58$21,349.59
7$21,349.59$1,200.00$1,007.72$23,557.31
8$23,557.31$1,200.00$1,109.33$25,866.64
9$25,866.64$1,200.00$1,215.62$28,282.26
10$28,282.26$1,200.00$1,326.80$30,809.06
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Examples

$10,000 initial, 4.5% APY, 10 yr, +$100/mo

Future Balance ≈ $31,585 · Interest Earned ≈ $9,585

$25,000 initial, 4.0% APY, 5 yr, no contributions

Future Balance ≈ $30,534 · Interest Earned ≈ $5,534

$5,000 initial, 5.0% APY, 15 yr, +$200/mo

Future Balance ≈ $67,737 · Interest Earned ≈ $26,737

How it works

The growth of a money market account uses the standard future value formula of compound interest, combined with the future value of a recurring monthly contribution stream:

Compound Interest Growth Formula

A = P × (1 + r_m)^(12·t) + PMT × ((1 + r_m)^(12·t) − 1) / r_m

The parts

  • A = future account balance
  • P = initial deposit amount
  • PMT = monthly contribution amount
  • r_m = effective monthly rate (converted from APY based on daily compounding)
  • t = time period in years

How to maximize your money market growth

To grow your savings as fast as possible, look for a money market account that offers a competitive APY, has low or no monthly maintenance fees, and has low balance requirements. Even a small difference in APY can add up to thousands of dollars over a multi-year term.

Related financial calculators

For other savings structures and investment scenarios, check out:

Savings Goal CalculatorCompound Interest CalculatorInterest Calculator

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More tools from Money

APY CalculatorCalculate APY (annual percentage yield) from a nominal rate and compounding frequency. See the effective annual rate, interest earned on a starting balance, and how compounding turns a nominal interest rate into a higher interest yield. Works as an APY calculator, effective annual rate calculator, and compound interest rate explainer.Stock Profit CalculatorCalculate stock trading profit and loss, ROI percentage, and break-even sale price including purchase and sale commission fees.

Frequently asked questions

A money market account is a type of savings account offered by banks and credit unions that typically earns a higher interest rate than standard savings accounts. They often feature check-writing privileges and debit card access, combining savings growth with transactional flexibility.

It models the growth of your account balance by compounding your initial deposit and regular monthly contributions at a stated Annual Percentage Yield (APY). It applies compound interest formulas to project how your interest earns interest over the selected term.

Most commercial banks calculate interest on money market accounts on a daily basis (daily compounding) and credit it to the account monthly. Daily compounding provides slightly faster growth than monthly or annual compounding because your interest begins earning interest the very next day.

HYSAs and MMAs have very similar interest rates and growth projections. The primary difference is access: MMAs often come with check-writing capabilities and debit cards, whereas HYSAs are strictly savings vehicles without check access. Both are federally insured up to $250,000 per depositor, per insured institution, per ownership category. That is the standard maximum deposit insurance amount set by 12 U.S.C. 1821(a)(1)(E) and 12 CFR 330.1(o), with the NCUA equivalent at 12 U.S.C. 1787(k) for credit unions. It is not inflation-indexed: the FDIC and NCUA boards review it every five years and it has not moved since 2010.

A money market account is a bank deposit account that is FDIC-insured. A money market fund is a mutual fund investment offered by brokerage firms that invests in short-term debt securities (like US Treasury bills). Money market funds are not bank deposits and are not FDIC-insured, although they are generally considered very low risk.