How to use the Annual Percentage Yield Calculator
Enter the nominal annual rate and compounding periods per year and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
How it works
Calculated from the inputs shown in this tool.
Examples
- 5% compounded monthly
Effective annual rate: 5.12%
- 4.25% compounded daily
Effective annual rate: 4.34%
- 6% compounded quarterly
Effective annual rate: 6.14%
Limitations and assumptions
Confirm assumptions, units and applicable local rules before relying on results. Detailed content, accessibility and edge-case review remains ongoing.
Frequently asked questions
How do I calculate APY?
Divide the rate by the periods per year, add one, raise it to the number of periods and subtract one.
Why is APY higher than the quoted rate?
Interest earns interest during the year. The more often it compounds, the larger the effect.
What is a good APY?
It depends on the market. Compare against current savings and certificate of deposit rates.
Can I see the dollar interest?
Use the APY calculator, which also takes a deposit and a term.