Annual Percentage Yield (APY) Calculator
Calculate how much your investments will grow with compound interest using our free APY calculator. Simply enter your initial deposit, interest rate, and compounding frequency to see your potential earnings over time.
Your Calculation Results
What is APY?
Annual Percentage Yield (APY) is the real rate of return earned on an investment, taking into account the effect of compounding interest. Unlike simple interest, APY considers that interest is earned on previously accumulated interest.
Why APY Matters
- Helps compare different investment options
- Shows true earning potential with compounding
- Important for savings accounts, CDs, and investments
- Higher compounding frequency means higher APY
How to Use This APY Calculator
- Enter your initial deposit amount
- Input the annual interest rate (as percentage)
- Select how often interest is compounded
- Enter the number of years for your investment
- Click “Calculate” to see your results
This calculator supports whole numbers (e.g., 1000), decimals (e.g., 2.5), and fractions (e.g., 3/4) for flexible input options.
Understanding Compounding Frequency
The more frequently interest is compounded, the higher your APY will be. For example, a 5% interest rate compounded daily will yield more than the same rate compounded annually. Our APY calculator helps you visualize this powerful effect of compounding on your investments.