FREE CALCULATOR
APY Calculator
Calculate annual percentage yield from an interest rate and compounding frequency.
APY4.594%
One-year interest$459.40
End balance$10459.40
CALCULATOR GUIDE
About the APY Calculator
Calculate annual percentage yield from a nominal annual rate and compounding frequency.
How to use this calculator
- Enter the values requested by the calculator and check their units.
- Choose assumptions that match the scenario you want to estimate.
- Review the result and change one input at a time to compare scenarios.
- Verify important decisions against the relevant agreement, institution or official guidance.
How the calculation works
APY = (1 + r/m)^m − 1, where r is the nominal annual rate as a decimal and m is compounding periods per year.
Example
A nominal 5% rate compounded monthly produces an APY slightly above 5% because interest can earn interest.
Things to keep in mind
- Use the compounding frequency and terms disclosed by the account provider.
- APY does not necessarily account for account fees or future changes to variable rates.
- The result is an estimate based on the inputs and assumptions provided.
- Check applicable terms and official guidance before making financial, employment or academic decisions.
Frequently asked questions
How is APY different from the interest rate?
APY includes the effect of compounding over a year; the nominal rate alone does not.
Are results guaranteed or official?
No. The tool provides an estimate or arithmetic result and may not include every real-world rule, fee or policy.
Can I compare scenarios?
Yes. Change one input at a time to see how it affects the result.