APY Calculator

Calculate the annual percentage yield (APY) including the effect of compounding.

Annual Interest Rate (%)

Compounding Frequency

Use Cases

What is the difference between APR and APY?

APR is the simple rate. APY includes compounding effects. APY is always >= APR.

Why does compounding frequency matter?

More frequent compounding increases effective yield. Daily > monthly > yearly for the same nominal rate.

How do I compare savings accounts with different compounding?

Use APY to compare accounts directly since it already factors in compounding frequency to give you a true annual rate of return.

What is a good APY for a high-yield savings account?

High-yield savings accounts currently offer 4 to 5 percent APY, which is significantly higher than traditional brick-and-mortar bank savings rates.