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APY Calculator

APY (annual percentage yield) is the real yearly return on a deposit once compounding is included. Enter the nominal interest rate and how often it compounds to get the APY, and add a balance to see a year of interest in dollars.

Quick examples
%
$

Optional — shows a year of interest in dollars.

Your numbers stay in your browser. Nothing is uploaded.
APY5.116%
Interest in one year
$511.62
Balance after one year
$10,511.62

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Save a set of inputs you reuse — your usual rate, your loan, your room sizes — and load it back in one tap.

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    Results you calculate here are kept on this device so you can come back to them.

      Formula

      APY = (1 + r ÷ n)^n − 1, where r is the nominal rate and n the compounding periods per year
      Continuous compounding: APY = e^r − 1
      Interest in one year = balance × APY

      How to use it

      1. Enter the stated interest rate (the APR or nominal rate).
      2. Choose how often interest is compounded.
      3. Optionally enter a balance to see the dollar interest for one year.

      Worked examples

      5% compounded monthly on $10,000

      APY
      5.116%
      Interest in one year
      $511.62
      Balance after one year
      $10,511.62

      6% compounded quarterly on $2,000

      APY
      6.136%
      Interest in one year
      $122.73
      Balance after one year
      $2,122.73

      4% compounded daily on $25,000

      APY
      4.081%
      Interest in one year
      $1,020.21
      Balance after one year
      $26,020.21

      APY versus APR

      APR is the rate before compounding; APY is what you actually earn or owe over a year. Banks advertise APY on savings because it is the bigger number, and lenders quote APR on debt because it is the smaller one. A 5% rate compounded monthly is a 5.116% APY; compounded daily it is 5.127%.

      The gap widens at high rates. A credit card at 24% APR compounding daily costs an effective 27.11% a year if you never pay it down.

      Questions people ask

      What is the APY on 5% interest compounded monthly?

      5.116%. On $10,000 that is $511.62 of interest in a year rather than $500.

      How do I convert APR to APY?

      Divide the APR by the number of compounding periods, add 1, raise it to that number of periods and subtract 1. For 6% compounded quarterly: (1 + 0.06 ÷ 4)^4 − 1 = 6.136%.

      Does daily compounding beat monthly by much?

      No. At 4.5% the APY is 4.594% monthly and about 4.60% daily — roughly a dollar a year per $10,000.

      Related calculators

      Compound Interest CalculatorGrow a balance with compound interest and optional monthly deposits.CD CalculatorWhat a certificate of deposit is worth at maturity and the interest it earns.Savings CalculatorHow much your savings will be worth with regular monthly deposits.APR CalculatorThe true yearly cost of a loan once fees are counted.Interest CalculatorInterest earned or owed on a balance — simple or compound, side by side.