Use this Money Market Account Calculator tool to estimate how your savings could grow when placed in a money market account.
Money Market Account Calculator
Estimate your returns with flexible contribution options.
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What Is a Money Market Account
A money market account is a savings account that usually pays a higher interest rate than a standard savings account while still allowing easy access to your money. These accounts are offered by banks and credit unions and are often insured, making them a lower-risk place to keep cash. Many money market accounts allow limited check writing or debit access, which adds flexibility compared to traditional savings accounts.
Interest in a money market account typically compounds daily, meaning interest is calculated and added to your balance every day. This daily growth can make a noticeable difference over time, especially when balances are higher. Because of this mix of higher rates and access, money market accounts are often used for emergency funds, short-term savings goals, or holding cash between investments.
What Is a Money Market Account Calculator
A Money Market Account Calculator is a tool that estimates how your savings could grow when placed in a money market account. It uses your starting balance, contribution amount, contribution frequency, interest rate (APY), and time horizon to project your future balance. Instead of guessing returns, the calculator gives you a clear estimate based on daily interest growth.
This calculator is useful because money market accounts are more complex than basic savings accounts. Contribution timing and daily compounding both affect results. The Money Market Account Calculator handles these details automatically and shows you how much of your future balance comes from deposits versus interest. This makes it easier to plan savings goals with realistic expectations.
How the Money Market Account Calculator Works
The Money Market Account Calculator simulates daily interest growth, which reflects how most money market accounts operate. Each day, interest is calculated using your current balance and added back into the account. This allows interest to earn interest over time, increasing total returns compared to non-compounding accounts.
The calculator also adjusts for different contribution schedules, such as daily, weekly, bi-weekly, or monthly deposits. Each contribution is added on its scheduled day and begins earning interest immediately. Over the selected time period, the calculator tracks total deposits, total interest earned, and balance growth year by year. The chart visually shows how compounding accelerates savings over longer periods.
Money Market Account Calculator Formula Explained
The Money Market Account Calculator is built on daily compounding interest, which is more precise than monthly estimates. The daily interest formula applies a small portion of the annual interest rate each day:
Daily Interest = Balance × (Annual Rate ÷ 365)
This daily interest is added to your balance, and the process repeats the next day using the new balance. Contributions are added at regular intervals based on the frequency you select. Over time, this creates a compounding effect where interest builds on both your deposits and prior interest.
At the end of the chosen time period, the calculator adds together your total deposits and accumulated interest to produce your final balance. This approach mirrors how real money market accounts grow in practice.
Inputs Used in the Money Market Account Calculator
Starting Balance
The starting balance is the amount you already have saved in your money market account. This balance begins earning interest on day one. A higher starting balance can significantly increase total interest earned because it compounds daily for the entire time period.
Contribution Amount
The contribution amount is how much money you add each time you make a deposit. Whether small or large, each contribution increases your balance and starts earning daily interest right away.
Contribution Frequency
The contribution frequency determines how often deposits are made. Daily and weekly contributions begin compounding sooner than monthly deposits, which can lead to higher total returns over long periods.
APY
The APY reflects the annual return including compounding. The calculator assumes the rate remains constant, even though real rates may change.
Time Horizon
The time horizon shows how long your money stays invested. Longer periods give daily compounding more time to work.
How to Read the Money Market Account Calculator Results
The results section of the Money Market Account Calculator shows three main figures: total contributions, interest earned, and future balance. Total contributions represent the actual money you deposited. Interest earned shows how much growth came from compounding, not deposits.
The future balance combines both values and reflects your projected account value at the end of the selected period. The growth chart helps you see how balances increase year by year and how interest becomes a larger part of your total savings over time. This makes it easier to compare different saving strategies visually.
When a Money Market Account Calculator Is Most Useful
A Money Market Account Calculator is most useful when planning savings that earn daily interest and allow flexible deposits. It works well for emergency funds, sinking funds, and short- to medium-term savings goals where stability matters.
By adjusting contributions, rates, and timelines, you can test different scenarios without risk. This makes the calculator a practical planning tool for anyone considering or already using a money market account.