APY Calculator
Convert APR to Annual Percentage Yield for any compounding frequency.
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๐ก Expert Tips
APY is always higher than APR due to compounding.
Compare APY not APR when choosing savings accounts.
How to read your result
APY (Annual Percentage Yield) converts a nominal rate and compounding frequency into a single comparable number โ it's most useful for comparing two accounts with different compounding schedules (e.g., monthly vs daily), where comparing the nominal rates alone would be misleading.
โ ๏ธ Common Mistakes
โ Comparing a nominal APR from one account directly to an APY from another.
โ APY already includes the effect of compounding, while APR (nominal rate) doesn't โ comparing them directly makes the APR account look worse than it may actually be. Convert both to the same basis first.
โ Assuming more frequent compounding always makes a meaningfully large difference.
โ Beyond monthly compounding, the difference to daily or continuous compounding is usually quite small in practice โ the compounding frequency matters far less than the underlying nominal rate itself.
Frequently Asked
What is APY?โพ
Annual Percentage Yield โ the real return including compound interest.
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Compound Interest Calculator
Example 1 โ Lump sum, no contributions
A = 1,00,000 ร (1.10)^10 โ โน2,59,374 โ more than 2.5ร growth