How much does a million dollars earn in interest? It depends almost entirely on the yield. At 4.5% APY, $1,000,000 earns $45,000.00 a year, about $3,674.81 a month or $120.60 a day, if you take the interest out. Change the amount, yield and years below, or use the tables for common rates.
Interest per year
$45,000.00
Interest per month
$3,674.81
Interest per day
$120.60
Balance after 10 years, reinvested
$1,552,969.42
Interest earned, reinvested
$552,969.42
Per-year, per-month and per-day figures assume you take the interest out, so the balance stays the same. Before tax and inflation. Results are estimates, not financial advice.
Interest on $1 million by rate
Per year, per month and per day, with the interest taken out so the balance stays at $1,000,000.
APY
Per year
Per month
Per day
3%
$30,000.00
$2,466.27
$80.99
4%
$40,000.00
$3,273.74
$107.46
4.5%
$45,000.00
$3,674.81
$120.60
5%
$50,000.00
$4,074.12
$133.68
6%
$60,000.00
$4,867.55
$159.65
7%
$70,000.00
$5,654.15
$185.38
What $1 million grows to with compound interest
If you leave the interest in, it compounds. Balance after each period:
APY
5 years
10 years
20 years
30 years
3%
$1,159,274.07
$1,343,916.38
$1,806,111.23
$2,427,262.47
4%
$1,216,652.90
$1,480,244.28
$2,191,123.14
$3,243,397.51
4.5%
$1,246,181.94
$1,552,969.42
$2,411,714.02
$3,745,318.13
5%
$1,276,281.56
$1,628,894.63
$2,653,297.71
$4,321,942.38
6%
$1,338,225.58
$1,790,847.70
$3,207,135.47
$5,743,491.17
7%
$1,402,551.73
$1,967,151.36
$3,869,684.46
$7,612,255.04
The formula
Yearly interest = Amount × APY. If the interest is paid out monthly, the monthly payment is Amount × ((1 + APY)1/12 − 1), which is slightly less than one twelfth of the yearly figure. If it is reinvested, the balance after t years is Amount × (1 + APY)t. If your bank quotes an interest rate (APR) instead of an APY, convert it first with the APR to APY calculator.
Interest income versus withdrawals
Living only on the interest keeps the $1 million intact. Spending more than the interest draws down the principal; the compound interest calculator with withdrawals shows how long the money lasts at a given monthly withdrawal. To compare where to keep it, see the high-yield savings and CD calculators.
Frequently asked questions
How much interest does $1 million earn in a year?
Interest per year = amount × APY. At 3% that is $30,000.00, at 4% $40,000.00, at 5% $50,000.00 and at 7% $70,000.00, before tax.
How much interest does $1 million earn per month?
About $3,273.74 a month at 4% APY and $4,074.12 at 5% APY, if the interest is paid out each month and the balance stays at $1 million. Dividing the yearly interest by 12 gives a close estimate.
How much interest does $1 million earn per day?
About $107.46 a day at 4% APY and $133.68 a day at 5% APY.
Can you live off the interest on 1 million dollars?
At current savings and Treasury yields of roughly 4–5%, $1 million pays about $40,000–$50,000 a year before tax, without touching the principal. Rates change, and inflation slowly erodes what that income buys, so many people plan around a lower withdrawal rate. Treat this as an estimate, not financial advice.
Where can you earn interest on $1 million safely?
Common options are high-yield savings accounts, CDs, money market funds and US Treasury bills. In the US, FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category, so large balances are often spread across several banks or held in Treasuries. Check the current limits with the FDIC.
Is interest on $1 million taxable?
In the US, interest from savings accounts, CDs and money market accounts is taxed as ordinary income in the year it is paid. Treasury interest is exempt from state and local income tax. Check your own situation with a tax professional.