🏛️ APY Calculator
Find the true effective annual yield of an interest rate once compounding is factored in.
What is APY?
Annual Percentage Yield (APY) is the effective annual rate of return on an interest-bearing account once compounding is taken into account. It’s always equal to or higher than the stated nominal (or “annual percentage rate”) interest rate.
How this calculator works
Enter the nominal annual interest rate and how often it compounds (daily, monthly, quarterly, semi-annually, or annually). The calculator uses the standard formula APY = (1 + r/n)^n – 1, where r is the nominal rate as a decimal and n is the number of compounding periods per year.
More frequent compounding produces a slightly higher APY for the same nominal rate. This tool is for general educational and planning purposes and does not account for fees or account-specific terms.