Since May 2020 the Federal Reserve includes savings deposits in M1, so M1 jumped and M1 and M2 became much closer. Money supply growth slowed sharply after 2022 as the Fed tightened.
How to use the Money Supply Calculator
- Currency in circulation
- Demand deposits
- Other liquid deposits (incl. savings)
- Small-denomination time deposits
- Retail money market funds
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter each component (in the same units, e.g. billions of dollars).
Tips
- Use real (inflation-adjusted) figures to compare across years.
- Check whether data are seasonally adjusted.
- Use the same currency and base year throughout.
- Economic models simplify reality – treat results as illustrations, not forecasts.
Common mistakes to avoid
- Mixing nominal and real values.
- Comparing percentage changes with percentage-point changes.
- Treating correlations as causes.
Inputs explained
| Field | What to enter |
|---|---|
| Currency in circulation | Amount in your currency |
| Demand deposits | Amount in your currency |
| Other liquid deposits (incl. savings) | Amount in your currency |
| Small-denomination time deposits | Amount in your currency |
| Retail money market funds | Amount in your currency |
What each result means
- M1 = [Currency in circulation] + [Demand deposits] + [Other liquid deposits (incl. savings)]
- M2 = [M1] + [Small-denomination time deposits] + [Retail money market funds]
- Currency share of M2 = [Currency in circulation]÷[M2]×100
Example values
How the main result changes when Currency in circulation changes and everything else stays at the example values above:
| Currency in circulation | M2 |
|---|---|
| 1,175 | 19,575 |
| 1,762.5 | 20,162.5 |
| 2,350 | 20,750 |
| 2,937.5 | 21,337.5 |
| 3,525 | 21,925 |
| 4,700 | 23,100 |
Formula
M1 = currency + demand deposits + other liquid deposits (incl. savings since 2020)M2 = M1 + small time deposits (< $100,000) + retail money market fundsWorked example
Inputs — Currency in circulation: $2,350; Demand deposits: $5,300; Other liquid deposits (incl. savings): $10,700; Small-denomination time deposits: $1,100; Retail money market funds: $1,300.
Results — M1 = $18,350.00; M2 = $20,750.00; Currency share of M2 = 11.33 %.
Frequently asked questions
What is M1?
Currency plus checking and other liquid deposits.
What is M2?
M1 plus small time deposits and retail money market funds.
Who publishes the money supply?
The Federal Reserve (H.6 release).
What formula does the Money Supply Calculator use?
M1 = currency + demand deposits + other liquid deposits (incl. savings since 2020).