Free Financial Calculator
Annual Percentage Yield Calculator
Convert a nominal interest rate into APY and compare common compounding frequencies.
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Complete the fields and select Calculate to view the estimate.
How This Calculator Works
APY is calculated with (1 + r/n)n − 1, where r is the nominal annual rate and n is the number of compounding periods per year. The comparison table keeps the nominal rate constant so you can see the effect of compounding frequency.
Frequently Asked Questions
Why is APY higher than the nominal rate?
APY includes the effect of earning interest on previously credited interest.
Do fees affect actual APY?
Yes. Account fees, minimum balances, and withdrawal rules can reduce actual earnings.
Is daily compounding always best?
It produces slightly more growth at the same nominal rate, but product terms matter more than frequency alone.