APY calculator
Convert a nominal rate and compounding frequency into the effective annual yield (APY).
- Instant
- Free
- Private (processed locally)
- No sign-up
From nominal rate to APY
Enter the nominal rate, choose the compounding and a balance: the tool computes the effective yield (APY) and the one-year gain.
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Nominal rate
In % per year.
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Compounding
Annually → daily.
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Read the APY
And the real gain.
Good to know
- APY = (1 + rate ÷ n)ⁿ − 1
- The larger n, the higher the APY
- APY lets you compare offers fairly
- Excludes fees and taxes
Example: 5% compounded monthly
| Item | Value |
|---|---|
| Nominal rate | 5.00% |
| Compounding | Monthly (n = 12) |
| APY | 5.116% |
| Gain on 10,000 | 511.62 |
Indicative estimate (excludes fees and taxes). 100% local calculation, not financial advice.
Frequently asked questions
What is the APY formula?
APY = (1 + rate ÷ n)ⁿ − 1, where “rate” is the nominal annual rate and “n” is the number of compounds per year.
How does it differ from the nominal rate?
The nominal rate ignores compounding; APY includes interest on interest. The more frequent the compounding, the more APY exceeds the nominal rate.
APY or APR?
APY measures a yield (savings, investment). APR measures a borrowing cost. Both adjust a nominal rate, but in opposite directions.
Is this financial advice?
No. It is an indicative calculation; it excludes fees, taxes and rate changes.