APY Calculator

Calculate APY (Annual Percentage Yield) from any APR and compounding frequency — and see exactly how much you earn on a deposit.

What Does This Tool Do?

Convert APR (the stated rate) to APY (the actual yield after compounding) for daily, monthly, quarterly or annual compounding. Shows how much more you earn versus the nominal rate.

Key Features

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APR → APY
Converts nominal rate to true effective yield.
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Earnings
Annual earnings on your deposit amount.
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Formula
(1 + r/n)^n − 1 shown clearly.
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6 Frequencies
Daily, weekly, monthly, quarterly, semi, annual.

How to Use

  1. Enter the APR (annual percentage rate) stated by your bank.
  2. Select how often interest compounds.
  3. Optionally enter your deposit amount.
  4. Click Calculate APY.

Frequently Asked Questions

What is the difference between APR and APY?▾
APR (Annual Percentage Rate) is the stated nominal rate. APY (Annual Percentage Yield) is the actual return after compounding. APY is always ≥ APR.
Why does compounding frequency matter?▾
More frequent compounding means each period's interest earns interest sooner. Daily compounding on 5% APR gives 5.127% APY vs 5.095% for monthly — small difference but meaningful over large amounts.
When does APY equal APR?▾
When compounding is annual (once per year), APY = APR exactly. The gap grows with frequency.