APY Calculator
Calculate the Annual Percentage Yield (APY) for savings accounts and investments.
See how compounding frequency affects your actual returns.
APY Results
APY Formula:
APY = (1 + r/n)^n - 1
Where:
- r = nominal annual interest rate (as a decimal)
- n = number of compounding periods per year
Compounding frequencies:
- Daily: n = 365
- Monthly: n = 12
- Quarterly: n = 4
- Semi-annually: n = 2
- Annually: n = 1
APY vs APR:
- APY (Annual Percentage Yield) = what you EARN on savings
- APR (Annual Percentage Rate) = what you PAY on loans
Why APY matters: The more frequently interest compounds, the more you earn. A 5% rate compounded daily gives an APY of 5.127% — the extra 0.127% is free money from compounding.