APY Calculator

Calculate the effective annual percentage yield (APY) for your savings or investments.

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How to Calculate APY Accurately

To calculate APY, use the formula: APY = (1 + r/n)n – 1, where r is the annual interest rate and n is the number of compounding periods per year. Our calculator does this for you instantly.

  1. 1
    Enter Interest Rate
    Input the nominal annual interest rate.
  2. 2
    Select Compounding Frequency
    Choose how often interest is compounded.
  3. 3
    (Optional) Add Deposit & Time
    See your total return and interest earned.

APY vs Interest Rate: What's the Difference?

The interest rate is the stated rate, but APY includes the effect of compounding, giving you a more accurate measure of your true return.

  • Interest Rate
    The stated rate, not including compounding.
  • APY
    Includes compounding for a true annual yield.
  • Comparison
    APY is better for comparing savings and investments.

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