{
  "id": "money-market",
  "version": "52f2e3933c09",
  "status": "published",
  "name": "Money Market Calculator",
  "question": "What will my money market earn?",
  "summary": "Computes the balance and interest of a money market account or fund from its APY or 7-day yield, with an optional monthly deposit, year by year.",
  "category": "finance",
  "subcategory": "investing",
  "url": "https://www.acalculator.org/finance/money-market-calculator",
  "markdown": "https://www.acalculator.org/finance/money-market-calculator.md",
  "kind": "schedule",
  "method": "Each month, interest = balance × ((1 + APY)^(1/12) − 1), then the deposit is added. A 7-day yield Y becomes APY = (1 + Y × 7 ÷ 365)^(365 ÷ 7) − 1.",
  "assumptions": [
    "The yield stays the same for the whole time; money market rates change often, so use this as an estimate.",
    "Deposits are added at the end of each month.",
    "Fees, taxes and withdrawal limits are not included."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "deposit": {
        "title": "Opening deposit",
        "description": "The amount in the account at the start.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "monthly": {
        "title": "Added each month",
        "description": "A deposit added at the end of every month. Leave it empty or 0 for none.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000
      },
      "rate": {
        "title": "Yield",
        "description": "The account’s APY, or the fund’s 7-day yield, as a yearly percent. Type your own rate.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 50
      },
      "quote": {
        "title": "The yield is",
        "description": "An APY (annual percentage yield, as banks quote a money market account) or a 7-day yield (as a money market fund quotes it).",
        "type": "string",
        "enum": [
          "apy",
          "seven"
        ]
      },
      "years": {
        "title": "Years",
        "description": "How many years the money stays in the account.",
        "type": "integer",
        "minimum": 1,
        "maximum": 50
      }
    }
  },
  "outputs": {
    "balance": {
      "label": "Balance at the end",
      "description": "The balance after the last month.",
      "format": "money"
    },
    "paidIn": {
      "label": "Money put in",
      "description": "The opening deposit plus every monthly deposit.",
      "format": "money"
    },
    "interest": {
      "label": "Interest earned",
      "description": "The balance minus the money put in.",
      "format": "money"
    },
    "firstYear": {
      "label": "Interest in the first year",
      "description": "The interest earned in months 1 to 12.",
      "format": "money"
    },
    "apy": {
      "label": "APY used",
      "description": "The effective yearly yield: the APY typed, or (1 + 7-day yield × 7 ÷ 365)^(365 ÷ 7) − 1.",
      "format": "percent"
    },
    "monthlyRate": {
      "label": "Monthly rate",
      "description": "The rate that compounds to the APY in 12 months: (1 + APY)^(1 ÷ 12) − 1.",
      "format": "percent"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "deposit": 10000,
      "monthly": 200,
      "rate": 4,
      "quote": "apy",
      "years": 5
    },
    "outputs": {
      "balance": 25402.33374971837,
      "paidIn": 22000,
      "interest": 3402.3337497183848,
      "firstYear": 443.68842126684297,
      "apy": 4,
      "monthlyRate": 0.3273739782198864
    },
    "text": "At 4% a year, $10,000.00 plus $200.00 a month grows to $25,402.33 in 5 years."
  },
  "examples": [
    {
      "given": {
        "deposit": 10000,
        "rate": 4,
        "quote": "apy",
        "years": 5
      },
      "expect": {
        "balance": 12166.529024,
        "interest": 2166.529024,
        "firstYear": 400
      },
      "source": "APY is the yearly growth with compounding (CFPB Regulation DD, Truth in Savings, 12 CFR 1030 Appendix A, https://www.consumerfinance.gov/rules-policy/regulations/1030/a/); hand calculation in content.mdx",
      "tolerance": 1e-9
    },
    {
      "given": {
        "deposit": 0,
        "monthly": 500,
        "rate": 4.5,
        "quote": "apy",
        "years": 3
      },
      "expect": {
        "paidIn": 18000,
        "balance": 19207.27167281408,
        "interest": 1207.2716728140804
      },
      "source": "future value of monthly deposits at the monthly rate (1 + APY)^(1/12) − 1 (Microsoft Excel FV function, https://support.microsoft.com/en-us/office/fv-function-2eef9f44-a084-4c61-bdd8-4fe4bb1b71b3); hand calculation in content.mdx"
    },
    {
      "given": {
        "deposit": 50000,
        "rate": 5,
        "quote": "seven",
        "years": 1
      },
      "expect": {
        "apy": 5.124591107244689,
        "balance": 52562.29555362235
      },
      "source": "SEC Form N-1A, Item 26(a): yield = 7-day base period return × 365/7, effective yield = (base period return + 1)^(365/7) − 1 (https://www.sec.gov/files/form-n-1a.pdf); hand calculation in content.mdx"
    }
  ],
  "sources": [
    "U.S. Securities and Exchange Commission, Form N-1A, Item 26(a): money market fund yield and effective yield. https://www.sec.gov/files/form-n-1a.pdf",
    "Consumer Financial Protection Bureau, Regulation DD (Truth in Savings), 12 CFR 1030, Appendix A: annual percentage yield. https://www.consumerfinance.gov/rules-policy/regulations/1030/a/",
    "U.S. Securities and Exchange Commission, Investor.gov: Money market funds. https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-5"
  ],
  "related": [
    "savings",
    "compound-interest",
    "cd",
    "apy",
    "interest"
  ],
  "changelog": []
}