Free Financial Calculator

Annual Percentage Yield Calculator

Convert a nominal annual rate into APY and compare compounding frequencies.

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How This Calculator Works

APY uses (1 + r ÷ n)n − 1, where r is the nominal annual rate and n is the number of compounding periods per year. It reflects compounding but not account fees or changing rates.

Frequently Asked Questions

Why is APY usually higher than the nominal rate?

APY includes the effect of interest earned on prior interest.

Does APY include fees?

Not necessarily. Review the institution’s disclosure for fees and conditions.

Can rates change?

Variable account rates can change, so actual earnings may differ.

Financial information notice: Results are educational estimates, not financial, tax, legal, or investment advice. Actual rates, fees, taxes, penalties, and product terms may differ.