Finance tool

APY Calculator

Estimate one-year compound growth from a stated annual rate and compounding frequency.

apy calculatorannual percentage yieldcompound interestsavings

How To Use APY Calculator

Quick notes to help you understand the result before you act on it.

Overview

Use this APY calculator to estimate how compounding affects yearly returns.

Enter the stated annual rate and compounding frequency to see final amount and interest earned.

APY Growth Formula

  • Amount = principal x (1 + rate / compounds per year) raised to compounds per year x years.
  • Interest earned = final amount - principal.

Practical Tips

  • For monthly compounding, enter 12 compounds per year.
  • This is an estimate and does not include fees, taxes, or changing rates.

FAQ

Common questions about this tool.

Is APY the same as interest rate?

No. APY reflects the effect of compounding, while the stated rate may not.

Can I compare savings accounts with this?

Yes, but also consider fees, minimum balances, and rate changes.