🇺🇸 United States

Money Market Calculator

Calculate your money market account earnings, compare MMA vs HYSA vs CD vs Treasury Bills, and optimize your deposits across tiered rate structures. Updated for March 2026 rates.

$
Initial deposit into your MMA
%
Top MMA rates: ~4.0% APY. National avg: 0.56%
Most MMAs compound daily

Try another scenario

How to Use This Calculator

MMA Earnings tab

The default tab. Enter your deposit amount, APY, and time period. The calculator shows total interest earned, monthly breakdown, and comparison to the national average (0.56%). Toggle tiered rates to model banks like CIT Bank that pay different rates at different balance levels.

Compare Accounts tab

Enter the same deposit and compare four options side by side: MMA, CD, HYSA, and Treasury Bills. Select your state to see the Treasury tax advantage — Treasury interest is exempt from state and local income taxes. In high-tax states like California (13.3%) or New York (10.9%), this can make Treasuries the best after-tax option even at a lower headline yield.

Tier Optimizer tab

Enter your bank's tiered rate structure and your current balance. The calculator shows exactly how much more you'd earn by reaching the next tier. See the impact of adding $1K, $5K, $10K, or $25K to your balance.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a partner, financial advisor, or bookmark for later comparison.

The Formula

Money market accounts use compound interest. With APY (Annual Percentage Yield), compounding is already factored in:

Interest Earned = Principal × (1 + APY)^Years - Principal

Monthly Interest ≈ Balance × ((1 + APY)^(1/12) - 1)

For tiered rates (marginal method):
Total Interest = Tier1 Interest + Tier2 Interest + Tier3 Interest
where each tier applies only to the balance within that range

Treasury Tax-Equivalent Yield = Treasury Yield ÷ (1 - State Tax Rate)

APY vs APR: APY includes compounding, so a 4.00% APY with daily compounding equals roughly 3.92% APR. When comparing accounts, always use APY for an apples-to-apples comparison.

Tiered rates: Most banks use marginal tiers (like tax brackets). The first $10K earns Tier 1 rate, the next $40K earns Tier 2 rate, and so on. Your blended rate is always between the lowest and highest tier.

Example

Lisa — emergency fund optimization in Portland, OR

Lisa has $45,000 in emergency savings sitting in a regular savings account earning 0.35%. She's researching money market accounts and high-yield options. She lives in Oregon (state tax: 9.9%) and wants to maximize after-tax yield without locking up her emergency fund.

MMA Earnings tab

Deposit$45,000
APY4.00%
Interest earned (1 year)$1,800
Monthly average$150
vs National avg (0.56%)+$1,548 more

By switching from her 0.35% savings to a 4.00% MMA, Lisa earns $1,800 in her first year — that's $150/month for doing nothing but moving her money.

Compare Accounts tab (Oregon, 9.9% state tax)

MMA (4.0%) after state tax$1,622
CD (4.1%) after state tax$1,663
HYSA (4.1%) after state tax$1,663
Treasury (3.7%) no state tax$1,665
Treasury tax-equivalent yield4.11%

In Oregon, Lisa's 3.7% Treasury Bills actually beat a 4.0% MMA after state taxes. The state tax exemption gives Treasury a 4.11% tax-equivalent yield — making it the best after-tax option for her.

Her decision

Lisa splits her $45,000: $20,000 in a high-yield MMA for immediate access (emergency fund needs liquidity) and $25,000 in Treasury Bills via TreasuryDirect for the tax advantage. Total projected earnings: ~$1,650/year after Oregon state tax.

FAQ

A money market account is a federally insured deposit account at a bank or credit union that typically earns higher interest than a regular savings account. MMAs are FDIC-insured up to $250,000 per depositor, per bank. Unlike CDs, your funds remain accessible — many MMAs offer check-writing and debit card access. The best MMA rates in March 2026 are around 4.0% APY (TotalBank, Brilliant Bank), while the national average is just 0.56%.
Both are FDIC-insured and earn competitive interest. MMAs often come with check-writing and debit card access, while HYSA accounts are purely savings. MMA rates and HYSA rates are very close in March 2026 (both around 4.0-4.2% APY). Some MMAs offer tiered rates that reward higher balances with better APY, while HYSAs typically pay a flat rate on all balances. Choose based on features you need — if you want check-writing access, go MMA; if you just want the highest rate, compare both.
It depends on your state. Treasury Bill interest is exempt from state and local income taxes (31 U.S.C. 3124), which matters in high-tax states. In California (13.3%), a 3.7% Treasury yield has a tax-equivalent yield of about 4.27%. In states with no income tax (TX, FL, NV, WA, WY, SD, AK, NH, TN), there is no state tax advantage and the higher MMA rate typically wins. Also consider liquidity: MMAs let you withdraw anytime, while T-bills lock your money for 4-52 weeks.
Many banks offer tiered MMA rates where higher balances earn higher APY. For example, CIT Bank pays 4.45% only on balances above $5,000. Most banks use marginal tiers (like tax brackets) where each portion earns its own rate. Your blended rate is the weighted average. The Tier Optimizer tab helps you see exactly how much more you'd earn by reaching the next tier — sometimes adding just $5,000 can significantly boost your effective yield.
Yes. Money market accounts at FDIC-insured banks are protected up to $250,000 per depositor, per bank, per ownership category. This covers both principal and accrued interest. For amounts over $250,000, consider splitting across multiple banks, using joint accounts (which double coverage to $500K), or using a CDARS/ICS network for automatic spreading. Important: do not confuse money market accounts (FDIC-insured) with money market mutual funds (not FDIC-insured, regulated by the SEC).

Related Calculators

Add This Calculator to Your Website

Embed the sum.money Money Market Calculator on your site. Free, responsive, always up-to-date.

<iframe src="https://sum.money/embed/us/money-market-calculator" width="100%" height="600"></iframe>