Curious as to how much your savings will grow based on a given APR? This calculator will show you how much your savings investment will grow based on APR. It will also factor in how the interest is compounded, and how long you plan to keep the money in the account. The formula is the same, regardless of whether you have a regular savings account or a money market account.
How do you calculate APR on a savings account?
To compound interest, you would divide the APR by the frequency the bank calculates dividends. This can be daily, monthly, quarterly, or annually. Then incrementally multiply that rate by your balance for each period. Savings accounts and money market accounts typically compound interest daily. To compound savings on a monthly or quarterly basis, many financial institutions will rely on your average monthly balance for that given period.
How Much Interest Will You Get In A Year?
Here are some examples of how much you can earn per year in a savings or money market account. Use the calculator to find how much you’ll earn based on your balance and APR.
How much interest will I get on $1000 a year in a savings account? At a .06% interest rate for a $1000 savings balance, you would earn .60 cents.
How much interest does 10000 make a year? At a .06% interest rate for a $10000 savings account balance, you would earn $6.00. For a money market account at .47%, you would earn $47.11.
Your financial institution should have its rates posted on their website. To find the average annual percentage rate for regular savings accounts, visit BankRate. BankRate also has the average APR for money market accounts.
You can use the calculator to adjust the APR as well as the compound rate to compare various savings plans and see different earnings.