APY Calculator
APY, or annual percentage yield, shows what a savings rate really earns in a year once interest is added to the balance. It is the number to compare when accounts use different compounding.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Divide the yearly rate by the number of times interest is added in the year, then compound that small rate over every period. The result is the yield. The more often interest is added, the higher the yield for the same rate.
This is a plain comparison tool. Banks may add interest on their own schedule, so the real return can differ a little.
Worked example
A rate of 5% added 12 times a year gives an APY of 5.12%. On $1,000.00, that is $51.16 of interest in a year.
Questions
What is the difference between APR and APY?
APR is the simple yearly rate. APY includes the effect of interest earning interest, so it is usually a bit higher.
Does compounding daily matter much?
For savings it adds a little. The rate itself matters more, so compare the rates first.
Is the APY the rate my account pays?
Not always. It is the yield for the period you enter. Check the account terms for the rate and how often interest is added.
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