Finance & Money
Money Market Yield Calculator
Prorate gross simple interest and annual fee across the holding period, add planned contributions, and annualize net interest against the opening balance.
Approximate gross interest for period-
Prorated entered fee-
Approximate net interest-
Contributions during period-
Balance plus additions and net interest-
Approximate net annualized yield-
Decision view
Gross-to-net money market yield
Gross-to-net money market yieldThe entered fee and contributions are shown separately from investment income.
Exact scenario comparisonAnnual account fee changes while all other entered assumptions remain constant.
| Annual account fee | Approximate gross interest for period | Prorated entered fee | Approximate net interest | Contributions during period | Balance plus additions and net interest | Approximate net annualized yield |
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How to use Money Market Yield Calculator
- Identify whether the product is a bank deposit account or fund.
- Enter the quoted yield and fee on comparable annual terms.
- Interpret net yield separately from ending cash after contributions.
Calculator guide
Understanding Money Market Yield Calculator
A quoted money-market yield does not show net holding-period income until the exact number of days and any entered fee are applied.
Calculation method
How the calculation works
Prorate quoted yield and an entered annual fee across the holding period, then add planned monthly cash contributions. Apply quoted annual yield for days divided by 365, prorate the annual fee on the same basis, and add average monthly contributions separately from investment income.
Product comparison
Compare protection, liquidity, and net yield together
The highest quoted yield is not the only product attribute.
Worked situations
Practical examples
- A fixed annual fee has a larger percentage effect on a smaller balance.
- Contributions increase ending value but are not yield.
- A money market fund distribution can vary daily.
Better inputs
Useful tips
- Check protection and liquidity terms.
- Use the current seven-day or account yield consistently.
- Compare net dollars as well as percentage yield.
Before relying on the result
Limitations and common mistakes
- The model uses simple period interest and average contribution timing.
- Fund price risk, insurance, tiering, waivers, taxes, and changing yields are excluded.
- Products with similar names can have different protections.
Reference
Key terms
- Gross yield
- Entered annual yield before the entered fee.
- Prorated fee
- Annual fee allocated across the holding days.
- Net interest
- Gross period interest minus prorated entered fee.
- Net annualized yield
- Period net interest scaled to one year against opening balance.
Important note
Calculated from the entered values and stated financial terms. It is not a product quote, lending decision, tax filing, or investment recommendation.
Frequently asked questions
Is this for both money market accounts and funds?
It can compare entered cash flows, but protections and risks differ and must be reviewed separately.
Are monthly additions treated as interest?
No.
Why use 365 days?
It provides a transparent annual prorating convention.
Does the net yield include tax?
No.