📈 Effective Annual Yield Calculator
Find the true effective annual yield of a savings account or investment once compounding frequency is taken into account.
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What is Effective Annual Yield?
Effective Annual Yield (EAY) shows the actual annual return earned on an investment once the effect of compounding within the year is included, allowing fair comparisons between accounts that compound at different frequencies.
The Formula
EAY = (1 + Stated Rate ÷ n)n – 1, where n is the number of compounding periods per year. More frequent compounding produces a higher effective yield for the same stated rate.
Note: This tool is for general educational and planning purposes only.
Last reviewed August 2026