How to use this apy calculator
Enter the values requested above and select Calculate. Change any input to compare another scenario. The calculation runs locally in your browser and does not require an account.
Formula and method
Example
A 5% nominal rate compounded monthly has an APY slightly above 5% because each month earns interest on prior interest.
Tips for a useful result
APY is useful for comparing deposit products that compound at different frequencies.
What this calculator is useful for
Convert a stated interest rate and compounding frequency into annual percentage yield (APY). The result is intended for quick estimates, checking arithmetic and comparing scenarios. When a result affects a contract, tax filing, medical decision, building-code requirement or other high-stakes situation, verify the result with the appropriate professional or authoritative source.
Frequently asked questions
What does the APY Calculator calculate?
Convert a stated interest rate and compounding frequency into annual percentage yield (APY).
How does the APY Calculator work?
APY = (1 + r ÷ n)^n − 1, where r is the nominal annual rate and n is the number of compounding periods per year.
Is the APY Calculator free to use?
Yes. ERICH Calculators is free to use and does not require an account.