Money Market Calculator

Calculate money market account returns vs savings account.

By Konstantin Iakovlev · Updated April 2026 · Source: SEC

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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

Money market accounts and traditional savings accounts both hold your cash safely, but they pay very different rates, and that gap is what determines how much interest you actually earn over time. The comparison matters most when rates are moving. In early 2026, money market accounts are typically advertising annualized percentage yields (APYs) between 4.00% and 5.25%, whereas ordinary savings accounts tend to land between 0.50% and 1.00%.

Projected earnings here come from the standard compound interest formula, A = P(1 + r/n)^(nt). In it, A is the future value of the balance including interest, P is the principal you start with, r is the annual interest rate expressed as a decimal, n is how many times interest compounds each year, and t is the number of years the money stays deposited. Both account types are modeled with monthly compounding (n=12), which matches how most banks credit interest.

Advertised APYs are not fixed. They shift with the broader rate environment and differ widely from one bank to the next, so the number you see today may not be the number you earn next quarter. Money market accounts can also carry minimum balance requirements or limits on withdrawals that quietly lower your effective yield, and account fees can erode returns further. Read the full terms on each account before you move your money.

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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