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APY Calculator

This APY calculator converts a nominal APR and a compounding frequency into annual percentage yield. Optionally add a deposit and years to estimate interest earned. It does not pull live bank rates.

Nominal annual rate. 5 means 5%, used as 0.05. This is APR, not APY.

Daily uses 365 periods, monthly 12, quarterly 4, and annual 1.

Leave blank, along with years, to see APY only.

Term in years. Used with the deposit in A = P(1 + r/n)^(n×t).

APY

5.127%

APY
5.127%
Nominal APR
5%
Compounding
Daily (365)
Periods per year
365
  1. Nominal APR 5% is r = 0.05.
  2. Daily compounding uses n = 365 periods per year.
  3. APY = (1 + 0.05/365)^365 − 1 = 5.127%.

APY uses the APR and compounding frequency you enter. It does not pull live bank rates. The math stays in your browser.

How to use

  1. Enter the nominal APR as a percent. 5 means 5% a year.
  2. Choose daily (365), monthly (12), quarterly (4), or annual (1) compounding.
  3. Read the APY. The formula is (1 + r/n)^n − 1.
  4. Optionally enter a deposit and years to see interest earned and the ending balance. Leave both blank to see APY only.

How it works

APY = (1 + r/n)^n − 1. r is the nominal APR as a decimal (percent ÷ 100). n is the number of compounding periods per year: 365 daily, 12 monthly, 4 quarterly, or 1 annual. Optional interest uses compound growth A = P(1 + r/n)^(n×t), where P is the deposit and t is years. Interest earned is A − P. This converts an APR you enter. It does not pull live bank rates, and it is not the CD calculator or the simple interest calculator.

Example. 5% APR compounded daily uses r = 0.05 and n = 365. APY = (1 + 0.05/365)^365 − 1 = 5.127%.

Example. A $10,000.00 deposit at that daily rate for 1 year ends at $10,512.67. Interest earned is $512.67.

Example. The same 5% APR compounded monthly is 5.116%, quarterly is 5.095%, and annually is 5.000%.

Frequently asked questions

What is the APY formula?

APY = (1 + r/n)^n − 1, where r is the nominal annual rate as a decimal and n is compounding periods per year.

APY vs APR?

APR is the nominal rate. APY includes compounding, so daily compounding makes APY a bit higher than APR.

How often do savings accounts compound?

Daily is common on high-yield savings. Monthly or quarterly also appear. Check the account disclosure.

Is this the same as the CD calculator?

No. This page converts rate and compounding into APY (and optional interest earned). The CD calculator is term-deposit growth for a certificate.

Does this pull live bank rates?

No. Enter the APY or APR a bank quoted you.

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