APY Calculator
Annual percentage yield (APY) is the real rate earned in a year once compounding is included. It lets you compare accounts that compound on different schedules.
Enter your figures below. Results update as you type.
APY5.116%
- Interest in one year
- $511.62
- Balance after one year
- $10,511.62
- APY with continuous compounding
- 5.127%
How the APY calculation works
APY = (1 + r / n)^n - 1
r is the nominal rate as a decimal and n the number of compounding periods per year. A 5% rate compounded monthly gives an APY of 5.116%.
Frequently asked questions
Is a higher APY always better?
For deposits, yes, assuming equal fees and access. For loans the equivalent figure works against you, so look for the lowest one.
How do I calculate APY from an interest rate?
Use APY = (1 + r / n)^n - 1, where r is the stated yearly rate and n is the number of compounding periods a year. A 4.9% rate compounded monthly is an APY of 5.01%.
What is the difference between APY and APR?
APR is the yearly rate without compounding. APY includes compounding, so it shows what you actually earn or pay over a year. Savings accounts advertise APY; loans and credit cards quote APR.
How much interest does $10,000 earn at 5% APY?
$500 over a full year. In the first month that is about $40.74, and a little more each month after as interest is added to the balance.
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