APY Calculator

APR is the nominal annual rate stated before any compounding within the year. APY is the effective annual yield after compounding is folded in. For the same rate, APY is always equal to or greater than APR, and the gap grows as compounding gets more frequent.

APY equals (1 plus APR divided by n) raised to the power n, minus 1, where APR is the nominal rate as a decimal and n is the number of compounding periods per year. The tool multiplies the result by 100 and rounds to four decimal places for display.

The more often interest is added, the sooner it starts earning interest of its own. At the same APR, daily compounding edges out monthly, which beats quarterly, semiannual and annual. That is why 12 percent yields 12.6825 percent monthly but 12.7475 percent daily.

When interest compounds only once per year, meaning you select Annually. With n equal to 1 there is no intra-year compounding, so the effective yield equals the nominal rate and APY equals APR exactly.

Switch to the APY to APR mode. It applies APR equals n times ((1 plus APY) raised to the power 1 over n, minus 1), which is the exact inverse of the APR to APY formula, so you can recover the nominal rate behind a quoted yield.

Five options are built in: Annually (1), Semiannually (2), Quarterly (4), Monthly (12) and Daily (365). Daily uses a 365-day year, which is the convention most banks quote, though some use 360 for certain products.

Rates are computed at full floating-point precision and then rounded to four decimal places. Trailing zeros are trimmed in the display, so 12.5000 percent shows as 12.5 percent while 12.6825 percent keeps all four digits.

No. APY reflects only the stated rate and its compounding. It does not subtract account fees, and it is a pre-tax figure, so your real return can be lower once charges and tax are applied.

No. Both conversions run entirely in your browser, so the rate and frequency you choose never leave your device.