Saving
APY Calculator
Calculate the Annual Percentage Yield from an interest rate and compounding frequency.
Calculator
%
12=monthly, 4=quarterly, 1=annually
Nominal rate
5.00%
APY
5.12%
What is apy?
APY (Annual Percentage Yield) shows the true annual return on a savings account or investment, accounting for compounding interest.
Example
A savings account paying 5% compounded monthly has an APY of 5.116%.
Money-saving tips
- •Always compare APYs when shopping for savings accounts.
- •Higher compounding frequency slightly increases APY.
- •Banks must disclose APY — use it for apples-to-apples comparison.
Common mistakes
- •Confusing APY with the nominal interest rate.
Financial definitions
- APY
- Annual Percentage Yield — the effective annual rate including compounding.
Frequently asked questions
Related calculators
APR Calculator
Convert between APR and APY based on compounding frequency.
Interest Calculator
Calculate simple or compound interest on any amount.
CD Calculator
Calculate the future value and interest earned on a certificate of deposit.
Emergency Fund Calculator
Estimate how much you need in an emergency fund based on your monthly expenses and target months of coverage.
Estimated reading time: 3 min