APY Calculator
Calculate Annual Percentage Yield to see actual interest earned.
Understanding APY (Annual Percentage Yield)
Annual Percentage Yield (APY) is the real rate of return earned on an investment, taking into account the effect of compounding interest.
How Compounding Works
Compounding interest is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods. The more frequently interest is compounded, the higher the APY will be.
APY = (1 + r/n)ⁿ - 1
- r: Stated Interest Rate
- n: Compounding Frequency