APY Calculator

Calculate Annual Percentage Yield (APY) from APR. Compare how different compounding frequencies affect your returns.

APR Details

APR Rate

0.10%20.00%

APY (Daily)

5.13%

APY (Monthly)

5.12%

APY (Quarterly)

5.09%

APY (Annually)

5.00%

APY by Compounding Frequency

How the APY Calculator Works

Understanding APY vs. APR

The most important thing our APY calculator reveals: APR and APY are not the same.

APR (Annual Percentage Rate)

Simple interest rate
Doesn't show compounding effect
What lenders often advertise
Lower number (looks better for loans)

APY (Annual Percentage Yield)

Includes compound interest
True return you'll earn
What savers should focus on
Higher number (shows real earnings)

APY = (1 + r/n)^n - 1

Where: r = APR (as decimal), n = Compounding periods per year

Why Compounding Frequency Matters

Our APY calculator shows dramatic differences based on how often interest compounds:

Compounding	Periods/Year	APY	Annual Interest ($10K)
Daily	365	5.127%	$512.70
Monthly	12	5.116%	$511.60
Quarterly	4	5.095%	$509.50
Annually	1	5.000%	$500.00

The APY calculator reveals that daily compounding earns you $12.70 more per year compared to annual compounding on this amount!

Key Features of Our APY Calculator

⚡ Instant APY Conversion

Our APY calculator works both ways: APR → APY to see what you'll really earn, and APY → APR to understand advertised rates. Real-time calculation as you type.

📊 All Compounding Frequencies

Calculate APY for daily (365 times/year), monthly (12 times/year), quarterly (4 times/year), semi-annually (2 times/year), annually (1 time/year), and continuous compounding.

🔍 Side-by-Side Comparison

The APY calculator shows multiple compounding scenarios at once, dollar difference in interest earned, visual comparison chart, and highlights the best option.

📈 Effective Rate Display

Beyond basic APY, see true annual return percentage, monthly equivalent rate, interest earned on various balances ($1K to $1M), and comparison to simple interest.

Why Use an APY Calculator?

Make Accurate Savings Account Comparisons

Banks compete on rates, but they don't all calculate interest the same way. Our APY calculator levels the playing field.

Scenario: Shopping for high-yield savings account

Option 1: Local credit union - "5.25% interest rate" (quarterly compounding) = 5.352% APY
Option 2: Online bank - "5.20% APY" (daily compounding) = 5.20% APY
Option 3: National bank - "5.15% rate, compounded monthly" = 5.271% APY

Result: The credit union is actually best! Without an APY calculator, you might have chosen the online bank based on their advertised "APY."

Understand Your True Earnings

The APY calculator removes confusion. What the bank says: "Earn 4% on your savings!" What they mean could be:

4% APR with annual compounding = 4.00% APY
4% APR with monthly compounding = 4.074% APY
4% APR with daily compounding = 4.081% APY
4% APY (already accounts for compounding)

On $50,000, the difference between lowest and highest is $40/year. Over 10 years, that's $400+. The APY calculator shows exactly what you'll get.

Evaluate CD Offers Accurately

Certificates of deposit are perfect for APY calculator use because terms are fixed, various compounding methods are used, and small APY differences equal significant dollars over time.

APY Calculator Tips & Strategies

1. Always Ask About Compounding Frequency

When shopping for savings products, don't just ask "What's your rate?" Ask: What's your APR? What's your APY? How often does interest compound? Then verify with the APY calculator.

Pro tip: If a bank only advertises an interest rate without specifying APR or APY, assume it's APR (the less favorable number) and use the APY calculator to find the real return.

2. Higher APY Isn't Always Better

Our APY calculator shows returns, but consider account features, accessibility, promotional rates, and balance tiers. A 5.2% APY with $100/month minimum deposits might be worse than 5.0% APY with no minimums.

3. Factor in Account Fees

The APY calculator shows gross returns, but fees reduce effective APY. A 5.0% APY with a $10/month fee on a $5,000 balance results in an effective APY of only 2.6%.

Lesson: A 4.5% APY with no fees beats 5.0% APY with $10/month fee on balances under $10,000.