APY Calculator - Calculate Annual Percentage Yield

Nominal Interest Rate (%)

Compounding Frequency

Initial Amount ($)

Time Period (Years)

APY Calculator Features

Calculate effective annual yield from nominal rates
Compare different compounding frequencies
See the impact of compounding on returns
Understand APY vs simple interest
Step-by-step calculation breakdown

What is APY?

Annual Percentage Yield (APY) is the effective annual rate of return taking into account the effect of compounding interest. Unlike the nominal rate, APY shows the actual return you'll earn over a year.

Compounding Frequencies

Annually: Interest compounded once per year
Semi-annually: Interest compounded twice per year
Quarterly: Interest compounded four times per year
Monthly: Interest compounded twelve times per year
Daily: Interest compounded 365 times per year
Continuously: Interest compounded infinitely

Key Benefits

Higher compounding frequency = higher APY
APY is always equal to or greater than nominal rate
Useful for comparing different investment options
Helps understand true investment returns