Skip to content

Finance · free · no sign-up

Apy calculator

APY (Annual Percentage Yield) shows what you actually earn in a year once compounding is included, so you can compare accounts that quote their rates differently.

How it works Report a problem

Yield Intelligence Pro

Precise APY and compound interest forecasting

Rate & Terms
%
Investment
$
Effective APY
0.00%
Future Portfolio Value $0.00
Total Interest Gain $0.00
Compounding increases your effective return by %.

APY tells you what a deposit actually earns in a year once compounding is counted. Two accounts can advertise the same interest rate and pay different amounts, simply because one compounds daily and the other monthly. This calculator converts any rate and compounding schedule into its APY.

How to use this calculator

  • Enter the stated annual interest rate of the account.
  • Choose how often interest compounds: daily, monthly, quarterly or yearly.
  • Press calculate to see the APY and the effective yearly growth.

Why compounding frequency matters

Each time interest is credited, it starts earning interest itself. Daily compounding therefore beats monthly, which beats yearly, at the same nominal rate. The difference looks small in one year and becomes meaningful over a long savings horizon or a large balance.

Frequently asked questions

What is the difference between APY and APR?
APY measures what you earn on savings and includes compounding. APR measures what you pay on borrowing and includes fees. Both end up higher than the plain interest rate, for opposite reasons.
Is a higher APY always better?
For savings, generally yes, but check for minimum balances, withdrawal limits and introductory rates that drop after a few months.
How is APY calculated?
APY = (1 + r/n)^n − 1, where r is the annual rate and n is the number of compounding periods per year. This calculator applies the formula for you.