Money market accounts are bank deposit accounts that pay higher rates than ordinary savings and are FDIC-insured; money market funds are mutual funds investing in short-term debt. Both suit emergency funds and short-term goals.
How to use the Money Market Account Calculator
- Starting balance
- Recurring monthly investment
- Expected annual return (APY)
- Investment period
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the starting balance, the recurring monthly deposit, the expected annual yield and the investment period.
Tips
- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.
Common mistakes to avoid
- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).
Inputs explained
| Field | What to enter |
|---|---|
| Starting balance | Amount in your currency |
| Recurring monthly investment | Amount in your currency |
| Expected annual return (APY) | In % |
| Investment period | Units: years, months |
What each result means
- Future value of the money market account = fvc((1 + [Expected annual return (APY)]÷100)^(1÷12) – 1, round([Investment period]×12), [Starting balance], [Recurring monthly investment], 0)
- Total deposits = [Starting balance] + [Recurring monthly investment]×round([Investment period]×12)
- Total interest = [Future value of the money market account] – [Total deposits]
Example values
How the main result changes when Starting balance changes and everything else stays at the example values above:
| Starting balance | Future value of the money market account |
|---|---|
| 2,500 | 16,277.44 |
| 3,750 | 17,798.25 |
| 5,000 | 19,319.07 |
| 6,250 | 20,839.89 |
| 7,500 | 22,360.7 |
| 10,000 | 25,402.33 |
Formula
FV = P × (1 + r ÷ 12)^(12t) + monthly deposit × [(1 + r ÷ 12)^(12t) − 1] ÷ (r ÷ 12)Worked example
Inputs — Starting balance: $5,000; Recurring monthly investment: $200; Expected annual return (APY): 4 %; Investment period: 5 years.
Results — Future value of the money market account = $19,319.07; Total deposits = $17,000.00; Total interest = $2,319.07.
Frequently asked questions
What is a money market account?
An interest-bearing bank account, often with check-writing and higher rates than savings.
Are money market funds insured?
Funds are not FDIC-insured; money market deposit accounts at banks are.
How often is interest paid?
Usually compounded daily and paid monthly.
What formula does the Money Market Account Calculator use?
FV = P × (1 + r ÷ 12)^(12t) + monthly deposit × [(1 + r ÷ 12)^(12t) − 1] ÷ (r ÷ 12).