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APY Calculator

Convert an interest rate to APY (annual percentage yield) for any compounding frequency, or APY back to the rate. See interest earned in a year. Free.

APY
4.594%
Interest in one year
459.40
Balance after one year
10,459.40

APY shows what you really earn

APY is the yearly return on savings once compounding is counted. APY = (1 + r ÷ n)^n − 1, where r is the interest rate and n the number of compounding periods a year. A 4.5% rate compounded monthly gives a 4.594% APY, so $10,000 earns $459.40 in a year. Banks must quote APY on US savings accounts and CDs, which makes it the fair way to compare them. Use the second tab to turn an advertised APY back into the rate.

How to use it

  1. 1

    Choose the direction

    Rate to APY, or APY to rate.

  2. 2

    Enter the rate and compounding

    Daily, monthly, quarterly or yearly.

  3. 3

    Read the result

    APY or rate, plus the interest on your deposit.

Frequently asked questions

What is the APY formula?

APY = (1 + r ÷ n)^n − 1.

APY vs APR?

APR is the simple yearly rate. APY includes the effect of compounding, so it's equal or higher.

Does daily compounding make a big difference?

Not much. 4.5% compounded daily is 4.603% APY, against 4.594% monthly.

Is anything stored?

No. The calculation runs in your browser.

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