Calculate the Annual Percentage Yield to understand the true return on your savings or investment.
APY (Annual Percentage Yield) is the effective annual rate of return taking compound interest into account. Unlike the nominal rate, APY shows what you actually earn in a year because it accounts for how often interest compounds.
APY is for savers (what you earn), while APR is for borrowers (what you pay). A savings account with 5% nominal rate compounded monthly has an APY of 5.116% — you earn more than the stated rate thanks to compounding.
| Frequency | APY at 5% Nominal |
|---|---|
| Annually | 5.000% |
| Semi-Annually | 5.063% |
| Quarterly | 5.095% |
| Monthly | 5.116% |
| Daily | 5.127% |