Money Market Account Calculator

Initial Deposit ($) Please enter a valid deposit amount.

Annual Percentage Yield — APY (%) Please enter a valid APY.

Time Period

Monthly Contribution ($) Leave 0 for no additional deposits

Total Interest Earned

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⚠️ Disclaimer: This calculator provides estimates based on a fixed APY. Actual money market rates are variable and may change. FDIC insurance covers up to $250,000 per depositor per institution. This is not financial advice.

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Sources & Methodology

✓ Formulas verified against FDIC compound interest guidelines and Bankrate money market resources.

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FDIC — Understanding Deposit Insurance & Interest

fdic.gov — FDIC definitions of money market deposit accounts, insurance limits, and compounding.

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Bankrate — Money Market Account Rates

bankrate.com — Current money market APY benchmarks and rate comparison methodology.

Compound interest formula (monthly compounding via APY):
Balance after n months = P × (1 + APY/12)^n + monthly_contribution × [((1 + APY/12)^n - 1) / (APY/12)]
APY already accounts for daily compounding frequency. Interest earned = Final Balance - Total Contributions.

Last reviewed: April 2026

How Is Money Market Account Interest Calculated?

Money market account interest is calculated using compound interest, typically compounded daily and credited monthly. Every day your balance earns interest on both the original principal and any previously earned interest. The Annual Percentage Yield (APY) captures this compounding effect and is the correct number to use when comparing accounts.

Money Market APY Formula

Monthly Interest = Principal × (APY / 12)

Example: $50,000 at 4.75% APY:
Monthly = $50,000 × (0.0475 / 12) = $50,000 × 0.003958 = $197.92/month
Annual total = $197.92 × 12 = $2,375 interest earned
Year-end balance = $52,375

Current Money Market Rates in 2026

Account Type	Typical APY	Min Deposit	FDIC Insured
Online Bank MMA	4.50% – 5.25%	$0 – $1,000	Yes
Credit Union MMA	4.00% – 5.00%	$500 – $2,500	NCUA
Traditional Bank MMA	0.50% – 2.50%	$1,000 – $10,000	Yes
Jumbo MMA (>$100k)	4.75% – 5.50%	$100,000+	Yes

How Much Does $50,000 Earn in a Money Market Account?

At 4.75% APY, $50,000 earns approximately $2,375 in year one — about $198 per month. Over 5 years with compounding and no additional deposits, the balance grows to approximately $63,100, earning $13,100 in total interest. Adding just $200/month in contributions brings the 5-year balance to approximately $78,500.

Money Market vs. High-Yield Savings Account

Both account types are FDIC insured and offer competitive APYs. Money market accounts traditionally offer check-writing privileges and debit card access. High-yield savings accounts frequently match or exceed MMA rates and often have no minimum balance requirement. The best choice depends on your need for liquidity access and the specific rates available when you open the account.

💡 Pro Tip: Money market APYs are variable and tied to the Federal Reserve's benchmark rate. When the Fed cuts rates, money market APYs typically decline within weeks. Consider laddering a portion of savings into CDs to lock in favorable rates while keeping your money market account for liquid emergency funds.

Frequently Asked Questions

Multiply your balance by the APY and divide by 12 for monthly interest. Example: $40,000 x 4.5% / 12 = $150/month. For compound growth over multiple years, use: Balance = Principal x (1 + APY/12)^months.

Competitive money market accounts at online banks offer 4.0% to 5.25% APY in 2026. Traditional bank MMAs average 0.5% to 2.5%. Always compare APY and check for minimum balance requirements that could affect your yield.

Yes. Money market deposit accounts (MMDAs) at FDIC-insured banks are covered up to $250,000 per depositor per institution. Credit union MMAs are insured by the NCUA for the same amount. Money market mutual funds are not FDIC insured.

Most money market accounts compound interest daily and credit it monthly. Daily compounding maximizes your earnings. The APY figure already accounts for the compounding frequency, so using APY in calculations gives accurate results.

At 4.75% APY, $100,000 earns approximately $4,750 per year or $396 per month. At 5.0% APY, that is $5,000 per year or $417 per month. After 5 years of compounding, the balance grows to approximately $126,000 to $128,000.

Yes. Unlike CDs, money market accounts allow deposits at any time up to the FDIC insurance limit per institution. Regular contributions accelerate balance growth significantly. Use the monthly contribution field in our calculator to model ongoing deposits.

The interest rate is the base annual rate before compounding. APY (Annual Percentage Yield) reflects the actual return after compounding. For daily compounding, APY is slightly higher. Always use APY when comparing accounts for an apples-to-apples comparison.

CDs offer a fixed rate for a set term — protecting against rate drops — but penalize early withdrawals. Money market accounts offer flexibility and liquidity. In a declining rate environment, CDs lock in a better rate. In a rising rate environment, money markets adjust upward automatically.

Federal Regulation D historically limited savings and money market withdrawals to 6 per month, though the Federal Reserve suspended this in 2020. Many banks still enforce their own limits and may charge excess withdrawal fees. Check your specific account terms.

Minimums vary widely. Online banks often have no minimum or $1. Traditional banks typically require $1,000 to $10,000. High-yield or jumbo money market accounts may require $25,000 to $100,000 for the best rates. Some accounts charge monthly fees if the balance drops below a threshold.

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