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Money Market Rate Calculator

Money Market Rate Calculator

Estimate your potential returns on money market accounts with customizable parameters for interest rates, contributions, and more. Compare performance with other savings vehicles and analyze the impact of taxes and inflation.

Investment Parameters
Initial lump sum deposit amount
$1,000 $100,000
Regular monthly deposits increase your returns over time
$0 $2,000
Current money market rates typically range from 3% to 5.25%
0% 10%
Years
Longer periods maximize compound interest
More frequent compounding increases returns
Account Details
Auto-fills typical rates based on provider
FDIC insurance protects your deposits
Many high-yield accounts have no penalties (0%)
Economic Factors
Current U.S. inflation rate: ~3.2% (2023)
Combined federal and state tax rate on interest

Welcome to the Money Market Rate Calculator!

Enter your investment details in the form on the left to calculate returns.

This calculator helps you:
  • Project money market account growth
  • Calculate interest and taxes
  • Account for inflation impact
  • Assess liquidity and FDIC insurance
  • Visualize results with charts
About Money Market Accounts
What is a Money Market Account?

A money market account is a type of savings account that typically pays higher interest rates than traditional savings accounts. These accounts often require higher minimum balances and may limit withdrawals, but offer better returns while maintaining liquidity.

Key Benefits
  • Higher Interest Rates: Generally offer better rates than standard savings accounts
  • FDIC Insurance: Balances are typically insured up to $250,000
  • Liquidity: Provides relatively easy access to funds compared to CDs or other investments
  • Low Risk: Very low risk compared to stocks or bonds
Considerations
  • Minimum Balance Requirements: Often require higher minimum balances than regular savings accounts
  • Limited Transactions: May have restrictions on the number of withdrawals per month
  • Inflation Risk: Returns may not always keep pace with inflation over long periods
  • Tax Implications: Interest earned is taxable as ordinary income