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APY Calculator
Convert between APR and APY for any compounding frequency, and see a year’s interest.
Result
—
Effective annual yield.
| The other rate | — |
|---|---|
| Interest in 1 year | — |
| Balance after 1 year | — |
| Compounding | — |
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Enter your figures above to see the step-by-step working.
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How the APY Calculator Works
APR is the nominal yearly rate; APY (annual percentage yield) is what you actually earn once compounding is counted. Because interest earns interest during the year, APY is always a little higher than APR — and the more often it compounds, the bigger the gap. This calculator converts between the two and shows a year’s interest on a balance.
APY is the honest number for comparing savings accounts and CDs, since it folds in the compounding frequency. When comparing offers, line up APY against APY.
APY = (1 + APR ÷ n)^n − 1 (n = compounds per year)
Frequently Asked Questions
What is the difference between APR and APY?
APR is the base yearly rate; APY includes compounding within the year, so it’s slightly higher. 5% APR compounded daily is about 5.13% APY.
Why does compounding frequency matter?
More frequent compounding earns interest on interest sooner, raising the effective yield. Daily beats monthly beats annual for the same APR.
Which should I compare between banks?
APY. It reflects what you actually earn after compounding, so it’s the fair basis for comparing savings accounts and CDs.
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