APY Calculator
Effective yearly yield with compounding.
Enter your values
Enter the nominal rate in %.
Choose one of: Daily, Monthly, Quarterly, Annually.
Enter the starting balance in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- APY
- 4.594%
- Interest in year 1
- $459.40
- Balance after 1 year
- $10,459.40
- Balance after 5 years
- $12,517.96
Working
- 1APY = (1 + 0.045/12)^12 − 1 = 4.594%
Quick answer
APY is the effective annual return after compounding, so it is always equal to or higher than the stated nominal rate.
APY = (1 + r/n)^n − 1
At a glance
| What it does | Effective yearly yield with compounding. |
|---|---|
| Category | Finance |
| Inputs needed | Nominal rate, Compounding, Starting balance |
| Main output | APY |
| Formula | APY = (1 + r/n)^n − 1 |
| Cost | Free — no sign-up, no download |
How to use the APY Calculator
- 1Enter the advertised nominal rate.
- 2Pick the compounding frequency.
- 3Add a balance to see the dollar difference.
Inputs explained
- Nominal rate(%)
- Enter the nominal rate in %.
- Compounding
- Choose one of: Daily, Monthly, Quarterly, Annually.
- Starting balance($)
- Enter the starting balance in $.
Worked example
Using the values the calculator loads with:
Inputs
- Nominal rate4.5 %
- CompoundingMonthly
- Starting balance10000 $
Results
- APY4.594%
- Interest in year 1$459.40
- Balance after 1 year$10,459.40
- Balance after 5 years$12,517.96
- APY = (1 + 0.045/12)^12 − 1 = 4.594%
Frequently asked questions
Is APY the same as APR?
No. APR describes borrowing cost, APY describes earning yield with compounding.
Does daily compounding matter much?
At normal rates the gap between daily and monthly is only a few hundredths of a percent.
What do I need to enter into the APY Calculator?
Just 3 values: nominal rate, compounding, starting balance. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the APY Calculator work out the answer?
APY is the effective annual return after compounding, so it is always equal to or higher than the stated nominal rate. It applies the formula APY = (1 + r/n)^n − 1 and shows the working so you can check each step by hand.
Is the APY Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.