APY Calculator
Calculate annual percentage yield from interest rate and compounding frequency.
How this calculator works
How to use this calculator
1. Enter the stated annual interest rate.
2. Enter the number of compounding periods per year, such as 12 for monthly compounding.
3. Click Calculate APY to see the effective annual yield after compounding.
Formula used
APY = (1 + r/n)^n − 1
where:
r = annual interest rate as a decimal
n = number of compounding periods per year
The calculator multiplies the result by 100 to display APY as a percentage.
Example calculation
Example: 5% annual rate compounded monthly
APY = (1 + 0.05/12)^12 − 1
APY ≈ 0.05116
APY ≈ 5.12%
What the result means
APY shows the effective annual return after the effect of compounding. It can be higher than the stated annual interest rate when interest compounds more than once per year.
Frequently asked questions
Is APY the same as the stated interest rate?
Not always. APY includes compounding, while a stated annual rate may not.
What should I enter for monthly compounding?
Enter 12 compounding periods per year.
Does this include fees or taxes?
No. The result only reflects the entered rate and compounding frequency.