APY Calculator
Convert a nominal annual rate into annual percentage yield.
APY
5.116%
Ending balance
$10,511.62
Interest earned
$511.62
Formula
APY = (1 + annual rate / compounding periods) ^ compounding periods - 1.
The APY calculator shows the effective yearly return after compounding and estimates interest earned on a starting balance, which is useful for savings accounts and other compounded rates.
How to Use
The APY calculator shows the effective yearly return after compounding and estimates interest earned on a starting balance, which is useful for savings accounts and other compounded rates. Enter the Principal, Annual rate, and Compounding periods values and review the APY, Ending balance, and Interest earned outputs after you calculate.
- Open the calculator : Start with APY Calculator.
- Enter values : Fill in the required inputs and any optional settings.
- Review the result : Read the output and use the about page for more detail if needed.
Common Questions
What does the APY Calculator estimate?
Convert a nominal annual rate into annual percentage yield.
What can change the estimate?
This is an estimate, so taxes, fees, payment timing, compounding, and changing returns can move the result.
What is the difference between APY and APR?
APR (Annual Percentage Rate) is the interest you are charged when you borrow money, such as on a mortgage or credit card. APY (Annual Percentage Yield) is the interest you earn when you save or invest money, such as in a high-yield savings account, and it factors in the effects of compound interest.