APY Calculator
Enter a nominal interest rate and compounding schedule to calculate the effective annual yield.
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How to Use the APY Calculator
Enter the nominal annual interest rate, then choose how often the interest is compounded. Select Calculate APY to see the effective annual yield created by that compounding schedule.
APY Formula
The calculator uses the periodic-compounding formula APY = (1 + r / n)n - 1. In this formula, r is the nominal annual rate written as a decimal and n is the number of compounding periods per year.
Example
A nominal rate of 5% compounded monthly produces an APY of about 5.12%. The effective yield is higher than the nominal rate because interest is added to the balance throughout the year.