Skip to content
WPCalc Wise People Calculate

Annual Percentage Yield Estimator

This calculator helps you determine the annual percentage yield (APY), a key indicator of real returns on savings or investments. APY accounts for the effects of compounding interest, providing a more accurate picture than nominal rates. Ideal for comparing savings accounts, CDs, or investment opportunities.

Calculate Effective APY from Interest Rate and Compounding

Input Fields
r
%
Enter the nominal annual interest rate
n
How many times interest is compounded per year (e.g., 12 for monthly)
If enabled, the result will update automatically when you change any value.

Annual Percentage Yield (APY) Formula

Formula
$$\text{APY} = \left(1 + \frac{r}{n}\right)^n – 1$$

Where:

  • APY ā€“ Annual Percentage Yield
  • r ā€“ nominal interest rate (as a decimal)
  • n ā€“ number of compounding periods per year (e.g. monthly = 12)
  • The formula shows how compound interest increases the effective yield over time.


APY is a crucial metric for evaluating real returns from interest-bearing accounts. Unlike the nominal rate, APY reflects how often interest is compounded, making it easier to compare offers. For example, a 5% rate compounded monthly yields more than annually. This calculator supports fast, accurate APY computation and is suitable for use in banking, investing, and financial planning.

Previous
Rule 69 Time to Double

Leave a Reply

Your email address will not be published. Required fields are marked *

One thought on “Annual Percentage Yield Estimator”

  1. Calculators says:
    27.05.2020 at 10:45

    Iā€™d like to thank you for the efforts you have put in writing thiks website

    Reply