APY Calculator

Calculate Annual Percentage Yield (APY) and compare compound interest earnings across different savings accounts and investments

âœ“ APY Calculation âœ“ Interest Comparison âœ“ Earnings Projection

Calculate APY

Interest Rate Details

Annual Interest Rate (%)

Nominal annual interest rate

Compounding Frequency

Investment Details

Principal Amount ($)

Time Period (Years)

Monthly Deposit ($)

Additional monthly contributions

Account Type

APY Formula

APY = (1 + r/n)^n - 1

Where:

r = Annual interest rate

n = Compounding frequency

Continuous: APY = e^r - 1

Quick Examples

High-Yield Savings

4.5% APR, monthly compounding

Certificate of Deposit

5.2% APR, quarterly compounding

Money Market

3.8% APR, daily compounding

Current Market Rates

High-Yield Savings: 4.0-5.0%

CDs (1-year): 4.5-5.5%

Money Market: 3.5-4.5%

Traditional Savings: 0.1-0.5%

Understanding APY

Annual Percentage Yield (APY) represents the real rate of return earned on a savings deposit or investment, taking into account the effect of compounding interest.

APY vs APR: APY includes compounding effects, APR does not
Compounding: More frequent compounding increases APY
True Earnings: APY shows actual annual return
Comparison Tool: Use APY to compare different accounts

Maximizing Your APY

Shop Around

Compare APY rates across different banks and credit unions.

Consider Online Banks

Online banks often offer higher APY rates than traditional banks.

Regular Deposits

Make regular deposits to maximize compound interest benefits.