Money Market Account Calculator
Calculate how much your money market account will grow with compound interest. Compare APY rates, see yearly growth, and plan your savings with monthly contributions.
Quick Answer: $10,000 at 4% APY
1 Year: $10,407 (+$407) | 5 Years: $12,214 (+$2,214) | 10 Years: $14,918 (+$4,918)
💵 Account Details
📊 Your Earnings
Final Balance after 5 Years
Total Interest Earned
$2,867.01
Total Contributions
$16,000.00
📈 Year-by-Year Growth
| Year | Balance | Interest |
|---|---|---|
| Year 1 | $11,634.45 | +$434.45 |
| Year 2 | $13,335.60 | +$935.60 |
| Year 3 | $15,106.17 | +$1,506.17 |
| Year 4 | $16,948.99 | +$2,148.99 |
| Year 5 | $18,867.01 | +$2,867.01 |
💡 Tip: At 4% APY, you earn $400.00/year on your initial $10,000 alone (before compounding).
🔄 Compounding Frequency Comparison (1 Year, No Monthly Contributions)
Daily
$10,408.08
+$408.08 interest
Monthly
$10,407.42
+$407.42 interest
Quarterly
$10,406.04
+$406.04 interest
Yearly
$10,400.00
+$400.00 interest
Daily compounding earns slightly more than yearly, but the difference is small. Most MMAs use daily compounding.
📊 Money Market vs Other Savings Accounts
| Account Type | APY Range | Access | Min Balance | Best For |
|---|---|---|---|---|
| 💰Money Market | 3.5% - 4.5% | Limited (6/month) | $1,000 - $10,000 | Emergency fund, short-term savings |
| 🏦High-Yield Savings | 4% - 5% | Limited (6/month) | $0 - $100 | General savings, beginners |
| 📜CD (1-Year) | 4% - 4.5% | None (penalty) | $500 - $1,000 | Fixed goals, rate lock |
| 🐷Regular Savings | 0.01% - 0.5% | Unlimited | $0 - $25 | Convenience, traditional banks |
💰 Understanding Money Market Accounts
A money market account (MMA) is a type of savings account that typically offers higher interest rates than traditional savings accounts. As of January 2026, the best MMAs offer around 4% - 4.5% APY, compared to the national average of just 0.58%.
How Compound Interest Works
Compound interest means you earn interest on your interest. With daily compounding (most common for MMAs), your interest is calculated and added to your balance every day. This creates a snowball effect where your earnings accelerate over time. The formula is: A = P(1 + r/n)^(nt)
- P = Principal (initial deposit)
- r = Annual interest rate (as decimal)
- n = Number of times interest compounds per year
- t = Time in years
Money Market vs High-Yield Savings
Both accounts offer competitive rates, but MMAs often come with check-writing privileges and debit cards. However, they typically require higher minimum balances ($1,000-$10,000) to earn the best rates or avoid fees. High-yield savings accounts usually have lower minimums but less flexibility.
Tips to Maximize Your Earnings
- Compare rates: Online banks typically offer 3-4x higher rates than traditional banks
- Watch for fees: Monthly fees can eat into your interest earnings
- Set up automatic transfers: Regular contributions significantly boost long-term growth
- Mind the minimum: Keep enough to avoid falling below minimum balance requirements
📈 Top MMA Rates (Jan 2026)
*Rates change frequently. Always verify current rates.
💡 Quick Calculations
$5,000 @ 4% APY = $200/year
$10,000 @ 4% APY = $400/year
$25,000 @ 4% APY = $1,000/year
$50,000 @ 4% APY = $2,000/year
Bookmark this page
Press Ctrl+D (⌘+D on Mac) for quick access next time.
Related Tools
Frequently Asked Questions
With 5% APY on $5,000 compounded daily, you would earn approximately $256.25 in interest after one year, for a total balance of $5,256.25. Over 5 years, your balance would grow to $6,420.13, earning $1,420.13 in total interest.
At the current high-yield MMA rate of around 4% APY, $2,500 would earn approximately $102 in interest after one year. With monthly contributions of $100, your balance would grow to $3,848 after one year. The actual amount depends on your specific APY and contribution frequency.
With 5% APY compounded daily, $1,000 grows to $1,051.27 after 1 year ($51.27 interest), $1,105.16 after 2 years, and $1,284.03 after 5 years. The power of compound interest becomes more significant over longer periods.
$10,000 at 4.5% APY compounded daily for 5 years grows to $12,520.39. You would earn $2,520.39 in total interest. If you add $200 monthly contributions, your final balance would be $26,048.67.
Money market interest is typically calculated using compound interest with daily compounding. The formula is: A = P(1 + r/n)^(nt), where P = principal, r = annual rate, n = compounding periods per year, and t = time in years. APY (Annual Percentage Yield) already accounts for compounding, making it easier to compare rates.
Interest rate is the base rate paid on your deposit, while APY (Annual Percentage Yield) includes the effect of compound interest over a year. APY is always equal to or higher than the interest rate. For example, a 4% interest rate compounded daily equals approximately 4.08% APY. Always compare APYs when shopping for accounts.
💰 Disclaimer: This calculator provides estimates for educational purposes only. Actual earnings may vary based on your financial institution's specific terms, rate changes, and fees. APY rates are subject to change at any time. Always verify current rates with your bank before making financial decisions.