Convert a nominal rate to annual percentage yield for any compounding frequency.
Please do not make financial decisions based on these results.
What is the APY Calculator?
Convert a nominal rate to annual percentage yield for any compounding frequency. To use the APY Calculator, enter nominal rate, compounds per year, deposit; it returns apy, interest after one year, balance after one year, and shows them instantly as you type.
Where the APY Calculator fits
Convert a nominal rate to annual percentage yield for any compounding frequency. The main figure it returns is the APY, worked out from the values you enter.
It belongs with the other investment tools. If you are comparing options or checking a result from another angle, try the Equivalent Rate Calculator – AER, EAR Calculator or the Annualized Return Calculator.
How to use the APY Calculator
- Enter your numbers. The inputs are Nominal rate (%), Compounds per year, Deposit ($). Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the APY, and the cards below show Interest after one year, Balance after one year. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the APY Calculator using the default values shown in the calculator above:
Inputs
| Nominal rate (%) | 4.5 |
|---|---|
| Compounds per year | 12 |
| Deposit ($) | 10,000 |
Results
| APY | 4.59% |
|---|---|
| Interest after one year | $459.40 |
| Balance after one year | $10,459.40 |
With these inputs the calculator returns APY: 4.59%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Nominal rate (%) from 4.5 to 5.4 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| APY | 4.59% | 5.54% | +20.5% |
| Interest after one year | $459.40 | $553.57 | +20.5% |
| Balance after one year | $10,459.40 | $10,553.57 | +0.9% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the APY Calculator reports APY, interest after one year and balance after one year. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is the difference between APR and APY?
APY includes the effect of compounding; APR does not.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
How often does interest compound?
You choose it in the compounding field of this calculator: daily, weekly, monthly, quarterly, semiannual, annual or continuous.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related investment calculators
- Equivalent Rate Calculator – AER
- EAR Calculator
- Annualized Return Calculator
- Appreciation Calculator
- Finance Calculator
- IRR Calculator
- CAGR Calculator (Compound Annual Growth Rate)
- Effective Interest Rate Calculator
- ROI & Profit Margin Calculator
- Continuous Compound Interest Calculator
- Real Rate of Return Calculator
- Basis Point Calculator