High-Yield Savings Account (HYSA) Calculator
Calculate how much interest you'll earn in a HYSA, see how it compares to traditional savings, and find your true after-tax return.
HYSA interest is taxed as ordinary income. Adjust to your marginal federal rate.
Final Balance
$46,609
Interest Earned
$6,609
After-Tax Interest
$5,155
Monthly at Maturity
$184/mo
vs. traditional savings: +$6,087 more over 5 years
Based on your deposit of $10,000 + $500/mo for 5 years
Gross Interest
$6,609
Total earned before tax
Estimated Tax
-$1,454
At 22% marginal rate
Net Interest
$5,155
Effective yield: 2.58%/yr
A HYSA calculator shows you how much interest you'll earn in a high-yield savings account over time, comparing your growth to traditional savings accounts and accounting for taxes. It factors in your initial deposit, monthly contributions, current APY, compound frequency, and tax rate to give you a complete picture of your savings.
Formula:
Balance = (Principal + Monthly Contributions) × (1 + APY/n)^(n×t)Where n is the number of compounding periods per year (365 for daily compounding) and t is the number of years. Daily compounding maximizes your interest, which is why top HYSAs advertise this feature.
- 1
Enter your initial deposit amount
- 2
Set your planned monthly contributions (or 0 for a lump sum)
- 3
Enter the APY from your bank or one you're comparing
- 4
Select your compound frequency (most HYSAs compound daily)
- 5
Set your time horizon in years
- 6
Adjust the tax rate to see your true after-tax earnings
- The difference between 0.41% (national average) and 4.75% APY on $50,000 is over $2,100/year in extra interest
- HYSA interest is taxable as ordinary income — knowing your after-tax yield helps you compare to tax-advantaged options
- Compound frequency matters: daily compounding on a HYSA earns more than monthly, which earns more than quarterly
- HYSA rates are variable — projecting multiple years helps you plan for rate changes
- The FDIC insurance limit of $250,000 per bank matters for larger savers with multiple accounts
- Building or storing an emergency fund (3–6 months of expenses)
- Saving for a down payment on a home in the next 1–3 years
- Parking cash while deciding on longer-term investments
- Short-term savings goals: vacation, car, home improvement
- Holding your tax payment reserve between estimated quarterly payments
- •Open a HYSA at a different bank than your checking account to create a 'barrier' that makes impulse withdrawals less convenient.
- •Use the APY, not APR, when comparing accounts. Banks are required to show APY for savings products.
- •If you have over $250,000, split across multiple FDIC-insured banks or consider Treasury bills for the excess.
- •Some HYSAs have introductory 'teaser' rates that drop after 3–6 months. Check the standard ongoing rate before opening.
Have questions about using this calculator? Check out our financial guides or contact us for help.
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Frequently Asked Questions
What is a high-yield savings account (HYSA)?
A high-yield savings account is an FDIC-insured savings account that pays significantly more interest than a traditional bank savings account. In 2026, top HYSAs pay 4.5–5% APY, compared to the national average savings rate of around 0.41%. They're typically offered by online banks with lower overhead costs.
How is HYSA interest calculated?
HYSA interest is calculated using APY (Annual Percentage Yield), which accounts for compound interest. Most HYSAs compound daily and pay monthly. The formula is: Balance × (1 + APY/365)^365 - Balance for annual interest. Daily compounding means you earn interest on your interest every single day.
Is HYSA interest taxable?
Yes. Interest earned in a HYSA is taxed as ordinary income in the year it's earned. You'll receive a 1099-INT form from your bank if you earned more than $10 in interest. Use this calculator's tax adjustment feature to see your true after-tax return.
What's the difference between APY and APR?
APR (Annual Percentage Rate) is the simple interest rate without compounding. APY (Annual Percentage Yield) includes the effect of compounding. A 4.5% APR compounding daily results in a slightly higher APY. Banks are required to advertise APY for savings accounts, so compare APY when shopping rates.
Are HYSAs FDIC insured?
Yes. Legitimate HYSAs at FDIC-member banks are insured up to $250,000 per depositor, per institution, per ownership category. If you have more than $250,000 to park, consider spreading it across multiple FDIC-insured institutions or using Treasury bills for amounts above the limit.
Should I use a HYSA or invest in the market?
A HYSA is ideal for money you may need within 1–3 years: emergency fund, down payment savings, short-term goals. For money you won't touch for 5+ years, investing in diversified index funds historically outperforms even the best HYSA rates. Use both: HYSA for your safety net and liquid savings, investments for long-term wealth building.
Do HYSA rates change over time?
Yes. HYSA rates are variable and tied to the federal funds rate set by the Federal Reserve. When the Fed raises rates, HYSA APYs typically rise quickly. When the Fed cuts rates, HYSAs drop — often faster than they rose. Lock in today's rate while it's high by opening an account, but plan for rates to shift over your savings horizon.