APY Calculator
Annual Percentage Yield (APY) is the real rate of return on an investment or savings account, taking into account the effect of compounding interest. Unlike the nominal annual rate, APY reflects how often interest is compounded — daily, monthly, quarterly, or annually — and gives you the true yearly growth of your money.
Use this calculator to compare savings accounts, CDs, or any interest-bearing product by converting the stated nominal rate into APY. Enter an optional principal to see your projected balance and total interest earned after one full year.
How it works
APY = (1 + r/n)^n − 1, where r is the nominal annual rate (as a decimal) and n is the number of compounding periods per year (365 for daily, 12 for monthly, 4 for quarterly, 1 for annually).
Use cases
- Comparing savings accounts and high-yield deposit products
- Evaluating certificates of deposit (CDs) with different compounding schedules
- Understanding the real return on a money market account
- Converting a nominal interest rate to its effective annual equivalent
- Estimating interest income on a fixed principal over one year