Savings Calculator (High-Yield Savings & APY)
See how much interest your savings will earn. Enter what you have now, how much you’ll add each month, and your account’s APY, and the calculator shows your future balance and the interest you’ll earn — year by year.
Compare two rates side by side, such as a high-yield savings or money market account against a traditional savings account, to see what the difference is worth in dollars. The calculator also converts APY to its equivalent interest rate.
Calculator
Use the APY (annual percentage yield) your bank advertises for a high-yield savings, money market, or regular savings account. Rates on these accounts are variable and can change at any time.
Balance after 5 years
$32,020
at 4% APY
- Total deposited
- $28,000
- Interest earned
- $4,020
- Interest in year 1
- $466
- Equivalent rate (daily compounding)
- 3.922%
- Balance at 0.5% APY
- $28,475
The 4% account earns $3,545 more interest over 5 years.
Balance over time
Assumes the APY stays the same and deposits are made at the end of each month. Interest is taxable as ordinary income in the year it’s earned. FDIC (banks) and NCUA (credit unions) insurance covers up to $250,000 per depositor, per institution, per ownership category.
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Calculation Formulas
APY already reflects compounding, so the monthly factor is the twelfth root of (1 + APY).
Example:
4% APY → 0.327% a month.
The nominal rate compounded daily that produces the APY.
Example:
4.00% APY ≈ 3.92% compounded daily.
Key Figures
| Figure | Value | Description |
|---|---|---|
| Deposit timing | End of month | Deposits are added after each month’s interest. |
| Insurance limit | $250,000 | FDIC/NCUA coverage per depositor, per institution, per ownership category. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: October 2026
- Truth in Savings Act (APY)
Banks must disclose APY under Regulation DD, which makes it the right figure to compare savings accounts.
- Variable rates
Savings and money market rates can change at any time; this projection assumes the rate stays the same.
How to Use This Calculator
- Enter your initial deposit and how much you’ll add each month.
- Enter the APY your account pays and how many years you’ll save.
- Enter a second APY to compare, such as your current account’s rate.
- Read your future balance, the interest earned, and how much more the higher rate earns.
Frequently Asked Questions
How much interest will I earn on $10,000 in a high-yield savings account?
At 4% APY, $10,000 earns about $400 in the first year and grows to about $12,167 in five years with no additional deposits. At 0.5% APY it would earn about $50 in the first year.
What’s the difference between APY and interest rate?
The interest rate (APR) is the base rate; APY includes the effect of compounding, so it’s slightly higher. A 3.92% rate compounded daily equals about a 4.00% APY. Compare accounts by APY.
Is a money market account the same as a high-yield savings account?
They’re similar: both are FDIC- or NCUA-insured deposit accounts with variable rates. Money market accounts sometimes add check-writing or a debit card and may require a higher minimum balance.
Is savings interest taxable?
Yes. Interest is taxed as ordinary income in the year it’s credited, even if you leave it in the account. Your bank sends a Form 1099-INT if you earn $10 or more.
Guides to go with this calculator
How Much Emergency Fund Do You Need?
An emergency fund is the difference between a setback and a crisis. Here’s how many months to save, how to size it to your life, and where to keep it.
What Is a CD, and Is It Worth It?
A CD locks up your money for a fixed term in exchange for a guaranteed rate. Here’s how they work, the one big catch, and when they beat a savings account.
How Much to Save Each Month to Reach a Savings Goal
A savings goal is just a target and a deadline. Work backward to a monthly number, let compound interest chip in, and automate it so it happens without willpower.
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