APY Calculator
Effective yearly yield with compounding.
Enter your values
Results update instantly as you type — no submit needed.
Results
- 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
How to use the APY Calculator
- 1Enter the advertised nominal rate.
- 2Pick the compounding frequency.
- 3Add a balance to see the dollar difference.
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.