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Apy calculator
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 %.
About the 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 to use the Apy calculator
- Enter the Nominal Rate (%) and choose the Compounding frequency: annually, quarterly, monthly or daily.
- Optionally enter an Initial Deposit and Term (Years).
- Press Calculate Effective Yield.
Formula and method
APY = (1 + r ÷ n)ⁿ − 1, where r is the nominal annual rate and n is the number of compounding periods per year.
Worked example
A 5% nominal rate compounded monthly has an APY of 5.116%.
Compounding effect. A stated rate of 12% compounded monthly has an APY of 12.68%, because (1 + 0.12/12)12 − 1 = 0.1268.
When to use the Apy calculator
- Comparing savings accounts and certificates of deposit fairly.
- Converting a stated rate with monthly compounding into the effective yearly return.
- Checking the real earnings of a high-yield savings account.
Common mistakes to avoid
- Comparing an APR with an APY. They measure different things.
- Assuming a variable rate stays the same for a year.
Tips
- Compare savings accounts using APY, and loans using APR.
- More frequent compounding raises APY slightly.
Frequently Asked Questions
APR is the simple yearly rate without compounding. APY includes compounding, so it is equal to or higher than APR.
APR does not include compounding. APY does, so it is the better measure of what a savings account really pays.
For the same deposit and term, yes. Also check minimum balances, fees and whether the rate is fixed.