Money Market Calculator

Calculate money market account returns vs savings account.
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Use the Money Market Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

This Money Market vs. Savings Account Calculator helps you compare the potential returns of these two common deposit accounts. Understanding the difference is crucial for maximizing your interest earnings, especially as interest rates fluctuate. As of early 2026, money market accounts are generally offering annualized percentage yields (APYs) ranging from 4.00% to 5.25%, while traditional savings accounts often fall between 0.50% and 1.00%.

The calculator utilizes a simple compound interest formula to project your earnings: A = P(1 + r/n)^(nt), where A is the future value of the investment/loan, including interest; P is the principal investment amount (the initial deposit); r is the annual interest rate (as a decimal); n is the number of times that interest is compounded per year; and t is the number of years the money is invested for. For both account types, we assume monthly compounding (n=12) to reflect typical banking practices.

When using this calculator, remember that advertised APYs are subject to change and can vary significantly between financial institutions. Some money market accounts may have minimum balance requirements or transaction limits that could affect your effective yield. Always compare the specific terms and conditions of each account before making a decision, as fees can also eat into your returns.

Example: Comparing a $10,000 Deposit Over 3 Years

  1. 1 Input initial deposit of $10,000. For the Money Market Account, input an APY of 4.75%. For the Savings Account, input an APY of 0.75%. Set the investment period to 3 years.
  2. 2 The calculator will apply the compound interest formula for both scenarios. For the Money Market Account: $10,000 * (1 + 0.0475/12)^(12*3) = $11,515.82. For the Savings Account: $10,000 * (1 + 0.0075/12)^(12*3) = $10,227.05.
  3. 3 After 3 years, the Money Market Account would yield approximately $11,515.82, while the Savings Account would yield approximately $10,227.05. This represents a difference of $1,288.77 in favor of the Money Market Account.
  4. 4 This example clearly demonstrates the power of higher interest rates over time, even for relatively short investment horizons. While both accounts are FDIC-insured, the Money Market Account offers significantly greater earning potential in this scenario, highlighting its advantage for funds you don't need immediate access to but want to keep liquid.

Source: SEC · Last updated: April 2026

Frequently Asked Questions

What is the difference between a money market account and a savings account?
Money market accounts typically offer slightly higher interest rates, check-writing ability, and a debit card. Savings accounts are simpler with fewer features. Both are FDIC-insured up to $250,000. High-yield savings accounts have narrowed the rate gap significantly.
Are money market accounts safe?
Yes. Bank money market accounts are FDIC-insured up to $250,000, just like savings accounts. Do not confuse them with money market mutual funds, which are not FDIC-insured, though they are still considered very low risk.
What is the minimum balance for a money market account?
Minimums vary widely. Some online banks have no minimum; traditional banks may require $1,000-$25,000 to earn the advertised rate or avoid monthly fees. Always check the fee schedule and tiered rate structure before opening an account.

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