Money Market Calculator

Use this calculator to project money market account growth with interest and regular deposits.

What this calculator does

The money market calculator estimates a final balance from an initial deposit, monthly deposits, and APY.

It uses:

• initial balance
• monthly deposit
• annual interest rate
• time period in years

Money Market Formula

FV = P(1 + r)^n + PMT x (((1 + r)^n - 1) / r)

Where:

• FV = final balance
• P = initial balance
• PMT = monthly deposit
• r = monthly interest rate
• n = number of months

Example calculation

If:

• Initial balance = 10,000
• Monthly deposit = 300
• Annual interest rate = 4%
• Time = 5 years

Then:

• Total deposits = 28,000
• Final balance = about 31,000
• Interest earned = about 3,000

The account reaches about 31,000.

What is a money market account?

A money market account is a cash account that may combine savings interest with limited transaction features. It is often used for accessible cash reserves.

Why money market growth matters

• shows how cash reserves can earn interest
• helps compare deposit account options
• estimates interest on regular deposits
• supports short-term financial planning

When to use this calculator

• projecting money market balances
• comparing APY assumptions
• planning emergency fund growth
• estimating interest from monthly deposits

Common mistakes

• assuming APY will stay unchanged
• ignoring balance minimums or fees
• treating cash returns like investment returns
• forgetting withdrawals reduce compounding

Money market vs high-yield savings

Both can earn interest on cash. Money market accounts may offer different access features, while high-yield savings accounts are often simpler.

FAQs

What is a money market account?

A money market account is a deposit account that earns interest and may provide limited transaction access.

How do you calculate money market growth?

Compound the starting balance and monthly deposits at the monthly equivalent of the annual rate.

What is a good money market rate?

A good rate is competitive with other cash accounts after fees and minimum balance rules.

What is the difference between money market and high-yield savings?

The main differences are account features, access rules, minimums, and rate structure.