APY Calculator
Calculate the Annual Percentage Yield (APY) to see the true return on savings accounts and investments with compound interest
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Understand Your True Investment Returns
Banks advertise interest rates, but APY tells the real story. Annual Percentage Yield accounts for compound interest, showing exactly how much your money will grow. Our calculator compares different compounding frequencies so you can maximize your returns and make smarter savings decisions.
What is APY?
APY (Annual Percentage Yield) is the actual rate of return earned on an investment, taking compound interest into account. A 5% annual rate compounded monthly yields about 5.12% APY because you earn interest on your interest. The more frequent the compounding, the higher the APY for the same nominal rate.
APY Formula
APY = (1 + r/n)^n - 1How to Use This Calculator
APY Analysis Scenarios
Savings Account Comparison
Compare high-yield savings accounts by their true APY to maximize returns.
CD Rate Analysis
Evaluate certificate of deposit offers with different compounding terms.
Investment Growth
Project how much your investment will actually grow over time.
Frequently Asked Questions
APR is simple interest without compounding. APY includes compound interest effects. For savings, APY is higher than the stated rate. For loans, APR may exclude fees. Always compare APY to APY and APR to APR.